Ireland has officially released the Double Taxation Relief (Taxes on Income) (Sultanate of Oman) Order 2024, paving the way for the ratification of an income tax treaty with Oman.
Previously covered, Officials from Ireland and Oman signed an income tax treaty on 30 May 2024, marking the first agreement of its kind between the two nations.
The agreement was signed by Nasser Khamis Al Jashmi, Chairman of the Tax Authority, and Gerard Cunningham, Ambassador of the Republic of Ireland to the Sultanate of Oman, in Muscat.
The agreement is for the avoidance of double taxation and pertains to taxes on income and the prevention of tax evasion between the governments of the two countries.
It provides legal protection for investors, to spare them the imposition of double taxes. It also regulates the mechanisms of tax application in a manner that enhances investments and trade exchange between the two countries.
The treaty will become effective once both countries exchange ratification instruments and will apply retroactively from 1 January of the year following its enactment. Designed to eliminate double taxation, the agreement includes robust provisions to prevent tax evasion and avoidance, aligning with international standards established under the OECD’s Base Erosion and Profit Shifting (BEPS) initiative.
