Tax Treaty Case Law around the Globe 2022
1. Aufl. 2023
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25.1. Facts
The Supreme Court decision concerns the interpretation of article 21 of the Belgium-Norway Income and Capital Tax Treaty (1988) and article 23 of the Norway-Spain Income and Capital Tax Treaty (1999). Both articles deal with taxation of wage income for work “offshore”. According to article 21(5)(a) of the Belgium-Norway tax treaty:
Subject to subparagraphs b) and c), salaries, wages and similar remuneration derived by a resident of a Contracting State in respect of an employment connected with offshore activities in the other Contracting State may, to the extent that the duties are performed offshore in that other State, be taxed in that other State provided that the employment offshore is carried on for a period exceeding 30 days in the aggregate in any period of twelve months. [Emphasis added.]
The wording is similar to article 23 of the tax treaty between Norway and Spain. From the interpretation of this article, two main questions arise. The first is whether the tax liability to Norway under these two articles also includes wages for work performed within the baseline from which the territorial boundary at sea is calculated, i.e. whether the duties are “performed offs...