On June 7, 2023, Russia and Oman signed an Agreement for the Avoidance of Double Taxation and the Prevention of Tax Evasion on Income. According to the statement of the Ministry of Finance of the Russian Federation, the ratification of the Agreement is expected to take place by the end of this year.
The signing of the Agreement on the Avoidance of Double Taxation is likely a consequence of the March proposal from the Ministry of Finance and the Ministry of Foreign Affairs of the Russian Federation to suspend agreements on the avoidance of double taxation with "unfriendly countries."
The Agreement on the Avoidance of Double Taxation between Russia and Oman contains rules for determining the tax base and tax rates for income received by residents of both countries.
The tax rates established in the Agreement are as follows:
• General rate of tax on income in the form of dividends - 15%;
• Reduced rate on income in the form of dividends of companies that own at least 20% of the capital of the company paying such dividends during the year - 10%;
• Tax rate on interest income - 10%;
• Tax rate on royalties - 10%.
The Agreement provides exemptions for the payment of tax on income in the form of dividends and on interest income for state structures, state-owned companies, and other forms of state investments.
The signing of the Agreement on the Avoidance of Double Taxation is a positive step towards strengthening economic ties between the countries and providing more predictable conditions for business and investment.
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