Oman & India Revise Deal to Avoid Double Taxation

Oman and India have finalized an updated protocol to prevent double taxation and curb financial evasion related to income taxes, further bolstering their economic ties.

The agreement was signed in Muscat on Jan. 27 by Nasser bin Khamis Al-Jashmi, Chairman of Oman’s Tax Authority, and Indian Ambassador to Oman Amit Narang, as reported by Oman News Agency.

Al-Jashmi highlighted the importance of the new protocol in strengthening economic relations between the two countries, noting that the agreement is the result of ongoing efforts to enhance bilateral cooperation in the tax sector.

In December, Oman also signed a similar agreement with Tanzania to deepen their strategic partnership.

That deal aimed to foster an attractive investment climate, protect investors from double taxation, and increase transparency in financial transactions.

In October, Al-Jashmi represented Oman in signing a similar agreement with Estonia. The agreement adhered to the standard framework set by the Organization for Economic Co-operation and Development.

According to a statement from Estonia's Ministry of Foreign Affairs, the agreement was designed to provide a stable tax environment for both foreign entrepreneurs investing in Estonia and Estonian businesses expanding internationally.

The ministry emphasized that the primary goal of double taxation avoidance agreements was to foster investment between the signatory countries.

Additionally, the ministry highlighted that foreign investors value the assurance that they will not face a higher tax burden than local businesses operating in the target country.

As of October 2024, India exported US$410 million worth of goods to Oman and imported US$743 million, resulting in a trade deficit of US$334 million, according to the Observatory of Economic Complexity.

India’s top exports to Oman included petroleum products valued at US$146 million, processed minerals at US$24.4 million, and basmati rice at US$15 million. Iron and steel exports totaled US$13.9 million, while ships, boats, and floating structures contributed US$9.93 million.

On the import side, India’s purchases from Oman were led by fertilizers, totaling US$118 million. Petroleum products accounted for US$92.5 million, and ships, boats, and floating structures reached US$77.5 million. Other commodities amounted to US$45.2 million, while crude petroleum was valued at US$43.5 million.