The Norwegian Ministry of Finance published an interpretative statement on 30 June 2023, concluding that an individual subject to modified lump-sum tax regime with income having its source in Norway included in the control calculation will be considered a tax resident of Switzerland under the tax treaty between Norway and Switzerland.
The Norwegian Tax Directorate published one week later a principal statement, instructing the local tax offices to approve individuals subject to modified lump-sum tax regime in Switzerland as tax residents of Switzerland under the tax treaty, provided all other requirements for being a tax resident of Switzerland is met.
The clarifications from Norwegian tax authorities are welcomed. Norwegian individuals planning to move to Switzerland can now consider whether to apply for such modified lump-sum taxation in Switzerland without risking that modified lump-sum results in tax residency remaining in Norway under the treaty (provided all other requirements for being a tax resident of Switzerland is met). Whether a modified lump-sum taxation will be beneficial, must be considered on an individual basis taking into account all relevant facts and circumstances for the person considering moving to Switzerland.