This means that, according to the new tax rules on withholding tax, residents of Canada will be taxed (deducted) at the source in Norway on the pensions they receive from Norway starting from 2010.
A 15% “source tax” will automatically be deducted from the pension in connection with its payment and no other documentation is needed.
Avoidance of double taxation is regulated by the tax agreement between Norway and Canada; and it is Canada as the country of residence which is responsible for avoiding any double taxation.
The individual taxpayer must themselves contact and inform the taxation authorities in Canada that the Norwegian taxation should be taken into account in the tax assessment and to claim compensation. Most countries’ taxation authorities (tax offices) have information about how to avoid double taxation.
On the side, you will find a link to the ‘Convention between the Government of the Kingdom of Norway and the Government of Canada for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital’ (signed July 12th 2002) (on page 11 and onwards, you will find the English and Norwegian texts side by side):