Further to our previous Newsflash, dated 24 December 2015, and due to provided misleading information, please find below the correct tax rates from the Double Taxation Treaty between Norway and Serbia, which came into force on 1 January 2016 (corrections are shown in boldface):
Article 10 / Dividends:
- The tax rate applied will be 5%, if the recipient holds participation of at least 25% in the issuer paying the income
- The tax rate applied will be 15%, if the recipient holds participation of less than 25% in the issuer paying the income
Article 11 / Interest:
- The tax rate applied will be 10%
Article 13 / Capital Gains Tax:
- The tax rate applied will be 0%, if investors dispose of shares of an issuer, less than 50% of the total assets of which are located in Serbia
- The tax rate applied will be 20%, if investors dispose of shares of an issuer, more than 50% of the total assets of which are located in Serbia
Investors from Norway looking to avail of the more favourable DTT rates are obliged to provide Certificate of Tax Residence issued in 2016.
Amended Newsflash: Double Taxation Treaty with Norway Confirmed by the Parliament
Impact on investors: The DTT between Norway and Serbia creates a more favorable tax environment for eligible investors from both countries.