The Egyptian Cabinet approved the ratification of the income tax treaty with Oman on 9 July 2024.
Signed on 22 May 2023, the treaty specifies that dividends, royalties, and fees for technical services are liable to a maximum withholding tax rate of 10%, with interest subject to a 12% tax rate. Dividends and interest owned beneficially by a contracting state’s government are taxable solely in that state.
An earlier agreement was signed in 2000 but never came into force. The new treaty will come into effect once the ratification instruments are exchanged.
A tax treaty, also known as a double tax treaty or tax convention, is an agreement between two countries that aims to avoid double taxation of income earned by residents of those countries.
These treaties typically address issues such as which country has the right to tax specific types of income (such as dividends, interest, and royalties), mechanisms for resolving disputes between tax authorities, and procedures for exchanging tax-related information.
