Estonia and Oman sign an agreement on the avoidance of double taxation
Today 27 October, Estonian Ambassador to Oman Ingrid Amer and Director General of Oman’s Tax Authority His Excellency Nasser Al-Jashmi signed an agreement between the Republic of Estonia and the Sultanate of Oman on the avoidance of double taxation and the prevention of tax evasion and tax fraud and the accompanying protocol.
“Economic relations between Estonia and Oman have increased in recent years, especially on the digital transition and shipping. However, there is potential for much more and the freshly signed agreement is a positive impetus,” Ambassador Amer said.
The agreement between Estonia and Oman follows the standard contract of the Organization for Economic Co-operation and Development (OECD). Estonia is signing agreements on the avoidance of double taxation to ensure the stability of the tax environment for both foreign entrepreneurs investing in Estonia as well as Estonian entrepreneurs expanding to foreign markets.
The aim of an agreement on the avoidance of double taxation is to encourage investments between the parties. The agreement restricts the income taxes the country of revenue could impose on the revenue of residents of other countries, ensures equal treatment, and eliminates potential double taxation. In addition to the avoidance of double taxation, foreign investors consider it important that they are not bearing a heavier tax burden than local businesses in the target country. The obligation for mutual information exchange stipulated in the agreement creates additional possibilities for preventing tax fraud. The agreement will be submitted to the Riigikogu for ratification.
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