Signing of 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
January 9, 2014
1. 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 (English (PDF) / Japanese (PDF)) was signed on Thursday, January 9, 2014, in Muscat, between H.E. Mr. George Hisaeda, Ambassador Extraordinary and Plenipotentiary of Japan to the Sultanate of Oman and H.E. Darwish bin Ismail bin Ali Al Balishi, Minister Responsible for Financial Affairs of the Sultanate of Oman.
2. The Sultanate of Oman is an important supplier of energy, including oil and natural gas, to Japan. This Agreement will clarify the taxes imposed on the investments and economic activities of the enterprises invested in each country and will improve the environment to further promote mutual investment and economic exchanges.
3. Major points of the Agreement are :
(1) The Agreement clarifies taxable scope in the source country on business profit resulting from the business activities of the enterprises.
(2) Taxation on investment income in the source country is reduced as follows:
Dividends Interest Royalties 5% (10% shareholding requirement)
Exemption (government, etc.)
(3) The Agreement provides for a framework for smooth and ensuring dispute resolution on tax matters between the tax authorities of the two countries.
(4) The Agreement provides for provisions to implement the exchange of information regarding tax matters between the tax authorities of the two countries.
4. This Agreement will be approved in accordance with the legal procedures of each country (In case of Japan, the approval of the National Diet is required.) and each country will send through diplomatic channels to the other the written notification confirming such approval. The Agreement will enter into force on the first day of the next month following the date of receipt of the latter notification.