Tax Treaty Case Law around the Globe 2025

1. Introduction

The judgment rendered by the Oslo District Court (Oslo tingrett) on 13 November 2023 in case TOSL-2019-37485 (published in UTV-2023-1458) deals with the question of the foreign tax credit under the tax treaty between Norway and the United States. National Oilwell Varco Norway AS (“NOV Norway”) is a Norwegian limited liability company and tax resident in Norway that performed some activity on the continental shelf of the United States. According to US tax law and the tax treaty between Norway and the United States, NOV Norway had a permanent establishment in the United Staes, and the country was thus entitled to tax this income. The case deals with the question of whether NOV Norway is entitled to a foreign tax credit in Norway for the taxes paid in the United States and especially the effects of hybrid entities and transparency mismatches created by the US check-the-box regime.

S. 3562. Facts

The case concerns whether NOV Norway is entitled to a Norwegian foreign tax credit for the US federal income tax federal income tax paid on business profits attributable to a US permanent establishment in 2012 and 2013.

NOV Norway is a Norwegian limited liability company and part of the ...