Muscat: A double-taxation avoidance agreement between Japan and Oman is expected to come into force next month, the Japanese Foreign Ministry announced on Monday.
"With regard to the agreement between the Government of Japan and the Government of the Sultanate of Oman for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, which was signed on January 9, 2014, Japan sent to the Sultanate of Oman, a notification on the completion of its internal procedures for the entry into force of the agreement on August 17, 2014. Thus, all necessary procedures for the entry into force of the agreement have been completed. The agreement will enter into force on September 1, 2014," a press statement on the Japanese Foreign Ministry website announced.
"This agreement adjusts the taxation rights between Japan and the Sultanate of Oman to avoid international double taxation arising from economic and human exchanges. Reflecting the strengthened economic relations between Japan and the Sultanate of Oman, and to promote mutual investments, this agreement clarifies the limit of withholding tax rates imposed by the source state on dividends, interest and royalties," the statement added.
This agreement is expected to further strengthen the economic relations and human exchanges between Japan and the Sultanate, and contribute to the prevention of fiscal evasion.
The agreement was signed in Muscat by George Hisaeda, ambassador extraordinary and plenipotentiary of Japan to the Sultanate, and Darwish bin Isma'eel bin Ali Al Balushi, Minister Responsible for Financial Affairs of the Sultanate.
Oman is an important supplier of energy, including oil and natural gas, to Japan. This agreement will bring clarity on the taxes imposed on investments and economic activities of the enterprises that have invested in either country and will improve the environment to further promote mutual investment and economic exchanges.