- Double Tax Avoidance Agreements
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Double taxation Avoidance Agreements (“DTAAs”) as a tool for attracting foreign investors to Oman as a result of the investors being able to reduce the additional tax burdens. DTAAs also provide concessional withholding tax rates in certain cases. The provisions of DTAAs having been ratified by Omani Sultan Decrees override the local Income Tax Law.
Oman has signed comprehensive double taxation avoidance agreements with more than 30 countries inclusive of India, UK, Turkey, France, Canada, Singapore and Pakistan. Some of the treaties are yet to be ratified or have not yet come into force.
Recently, Oman signed 2 DTAAs: with Egypt in May 2023 and Russia in June 2023 respectively. The DTAA with Egypt has been ratified by Oman but is yet to be ratified by Egypt. These tax treaties will mark a significant step between the signatory countries in boosting foreign investment, cross border trade and strengthening of commercial ties between the nations.
Author details
Angad Ahuja Associate
Commercial & Projects
Al Busaidy, Mansoor Jamal & Co
Tel: +968 24829200
Email: angad.ahuja@amjoman.com