Ratification of the protocol between Russia and Oman on the avoidance of double taxation should take place before the end of this year, according to materials of the Ministry of finance of the Russian Federation.
"On June 8, Muscat hosted the signing of an agreement on the avoidance of double taxation and the prevention of income tax evasion between Russia and Oman. <...> Ratification of the protocol should take place before the end of this year so that its provisions will be applied from January 1, 2024 ", the materials read.
The agreement takes into account the peculiarities of bilateral economic cooperation and the level of economic development of the two countries. At the same time it meets the goal indicated by the Russian president to prevent capital outflow from the country and reflects the recommendations of the BEPS Plan (a project of the Organization for Economic Cooperation and Development, a set of measures to combat the tax base erosion and profit shifting to offshore zones - TASS). On the Russian side the document was signed by State Secretary - Deputy Minister of Finance Alexey Sazanov, on the Omani side - by Head of the Taxation Authority Saud Bin Nasser Al Shukaili.
"The document establishes a general withholding tax rate on dividend income of 15% and a reduced rate of 10% on dividend income of companies that own at least 20% of shares in the capital of the company paying the dividend during the year. The tax rate on interest income is also set at 10%," the materials state.
Moreover, it provides for exemption from tax at source on income in the form of dividends and interest for government agencies, state-owned companies and other forms of public investment. The tax rate on royalties is set at 10%.
Other details of the agreement
The agreement includes provisions for taxes on income from the alienation of shares or similar rights represented by immovable property at its location. It also defines the taxation of income from international transportation with a clear listing of income subject to the regulation, the report said.
"The signing of the agreement is an important step for further deepening of economic cooperation between Russia and Oman. In 2022 the volume of mutual trade between our countries has already shown a growth of 46%, it is necessary to further increase trade turnover and strengthen economic cooperation. The main goal of the agreement for us is mutual attraction of direct investments in the economy of both countries, development of trade, tourism and transport," said Sazanov, commenting on the signing.
GSV "Russia - Islamic World"
Based on materials from TASS