UK- Oman Tax agreement
A new protocol to the Double Taxation Agreement (DTA) between the UK and Oman was recently signed in London by the Financial Secretary to the Treasury and Oman’s Minister of National Economy.
The protocol updates the DTA by removing the withholding tax on dividends as well as providing for a withholding tax rate of 8 per cent on royalties. The updated protocol will also include special rules for UK-REITS.
The protocol also includes an ‘assistance in collection Article’ based on the joint Council of Europe/OECD multi-lateral Convention on Mutual Administrative Assistance in Tax Matters to which the UK is a signatory.
The protocol will take force once both countries have finalised the legislative procedures. The provisions will then take effect for tax years beginning on or after 1 January of the calendar year following its entry into force.