Russia and Oman sign agreement on double-taxation avoidance
MOSCOW. June 8 (Interfax) - Russian and Oman signed an agreement on the avoidance of double taxation and the prevention of income tax evasion. The document was signed on June 8 in Muscat by Secretary of State - Deputy Finance Minister Alexei Sazanov and head of the tax service of Oman Saud Ben Nasser Al Shukaili, the Russian Finance Ministry said.
The agreement establishes a general withholding tax rate on dividend income of 15%, and a reduced rate of 10% on dividend income for companies that own at least 20% of the capital shares of the company paying these dividends during the year. The tax rate on interest income is also set at 10%, the ministry said in a statement.
At the same time, it provides for exemption from withholding tax 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%.
The agreement includes provisions for the payment of taxes on income from the alienation of shares or similar rights represented by real estate, at its location. The procedure for taxation of income from international transportation is also defined, with a clear definition of the list of income that is subject to regulation.
The ratification of the protocol must take place before the end of this year, so that its provisions can come into force from January 1, 2024.