Oman: Double Tax Avoidance Agreement between Oman & Russia (DTAA)

In brief

Oman and Russia signed a double Tax Avoidance agreement (“DTAA”) on 8 June 2023. Signing of the DTAA is anticipated to encourage capital investment, trade in goods and services and other economic activities between the two nations by preventing International Double Taxation.

In detail

DTAA between Oman and Russia

On 8 June 2023, Oman and Russia signed a DTAA, which remarks a major step in boosting the commercial and trade ties between the two nations. 

There is no clarity yet on the terms of the agreement signed, however, we understand that the agreement covers avoidance of double taxation, and prevention of income and capital tax evasion. 

Signing the DTAA by both states is the first step of the initiation of the DTAA. If the additional procedural requirements are completed by 31 December 2023, the DTAA would become effective from 1 January 2024 or otherwise it is expected to be effective from 1 January 2025 (if the procedural requirements are completed within 2024). 

The DTAA is expected to facilitate further cross-border trade and investment between the two countries. We also believe that the DTAA may offer great potential reduction or exemption from tax with respect to cross-payments between Oman and Russia.

The takeaway

The signed DTAA is yet to be published in the official Gazette, and once it is issued, greater clarity will be obtained on the terms and provisions of the DTAA as well as on how it may boost relationships, economies and businesses for residents in either Oman or Russia. 

We shall keep you updated on this once we get clarity on the matter.