Muscat - The agreement on 'Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income' reached between Oman and Japan will come into force on September 1, 2014, Japan's Official Gazette said last week.
The agreement was signed on January 9 ahead of Prime Minister Shinzo Abe's visit to Oman.
Japan sent a notification through diplomatic channels on the completion of internal procedures on August 17, a press release from the Embassy of Japan said.
The agreement adjusts the taxation rights between Japan and Oman to avoid international double taxation arising from economic and human exchanges. Reflecting the strengthened economic relations between the two countries, and to promote mutual investment, this agreement clarifies the limit of withholding tax rates imposed by the source state on dividends, interest and royalties. It is expected to further strengthen the economic relations and human exchanges between Japan and Oman, and contribute to the prevention of fiscal evasion.
Substantial agreement has also been reached on bilateral investment agreement negotiations between the two countries. In 2013, the volume of exports from Oman to Japan was around US$5.63bn. Japan is one of Oman's largest importers of oil & gas, aluminium and fishery products. Imports from Japan to Oman were around US$3.13bn, the release added.
© Muscat Daily 2014
