Article 16 of the OECD Model Tax Convention contains a specific rule governing directors’ fees. Such remuneration may be taxed in the state where the company in respect of which the directorship is held is resident. Similar provisions are found in most of the tax treaties concluded by Norway.
Many Norwegian tax treaties, however, also apply to remuneration received for positions in corporate bodies other than the board of directors. For example, under the Nordic Tax Treaty, a “similar body” is treated in the same manner as a board of directors (Article 16), and this wording is repeated in many other treaties. The term “similar body” is generally understood to include a corporate assembly and a supervisory council.
Rules under Norwegian domestic law
Under Norwegian domestic law, the legal basis for imposing tax liability on directors and members of other governing bodies of Norwegian companies is found in Section 2-3(1)(e) of the Norwegian Tax Act.
Atle Melø
amelo@melo.no
+47 951 80 979
