Norway Terminates Nordic Inheritance and Gift Tax Treaty

Norway has terminated the agreement it signed with neighboring Nordic countries on the avoidance of double taxation in respect of inheritance and gift tax, the Finnish tax authority announced July 1.

The inheritance and gift tax treaty was signed by the Nordic countries, namely Finland, Norway, Sweden, Iceland and Denmark, in 1989 and has been effective since Dec. 17, 1992. The agreement provides for the avoidance of double taxation in respect of inheritance and gift tax.

Under Article 16 of the agreement, if a contracting state wishes to terminate the agreement with the other signatories, it is required to submit a notice in writing to Finland’s Ministry of Foreign Affairs, which will in turn inform the other parties to the agreement.

The agreement will cease to have effect in Norway from Aug. 22, 2014. However, the treaty will continue to apply in cases where the tax liability began before Aug. 22, 2014.

Previously, Sweden also terminated the treaty where the terms of the agreement ceased to have effect from Aug. 24, 2007.