Double Tax Agreement between Oman and the United Kingdom

The Double Taxation Agreement (DTA) between Oman and the United Kingdom (UK) is designed to eliminate the double taxation of income and profits earned by individuals and companies in both countries. This agreement is important for businesses operating cross-border between the two countries as it ensures that taxes are not paid twice on the same income or profit.

The DTA was signed by Oman and the UK on 29 October 2019 and came into force on 1 January 2021. The agreement covers taxes on income and gains from trade, business, profession, or employment as well as income from immovable property, dividends, interest, and royalties.

Under the DTA, residents of one country who derive income from the other country will be subjected to tax in that country only if the income is taxable in that country. The agreement also provides for reduced tax rates or exemptions on certain types of income. For example, withholding tax on dividends paid by a UK company to an Omani resident will be limited to 5% instead of the usual 15%, while withholding tax on interest and royalty payments will be limited to 10%.

Furthermore, the DTA contains provisions for the exchange of information between the tax authorities of both countries. This allows for greater transparency and cooperation in the prevention of tax evasion and the enforcement of tax laws.

Overall, the DTA between Oman and the UK is a significant step towards promoting trade and investment between the two countries. It provides certainty and stability for businesses operating cross-border and eliminates the risk of double taxation. The agreement also highlights the commitment of both countries to international tax standardization and cooperation.

In conclusion, the DTA between Oman and the UK is a positive development for businesses operating cross-border between the two countries. It provides clarity and certainty on tax matters and eliminates the risk of double taxation. This agreement is an important step towards promoting trade and investment between Oman and the UK and underscores the commitment of both countries to international tax standardization and cooperation.