India Oman to amend Double Taxation Avoidance Agreement
Agreements and MoU
5 min read
India and Oman have signed a protocol to amend the Double Taxation Avoidance Agreement (DTAA) and have also agreed to continue negotiations on the proposed India-Oman Comprehensive Economic Partnership Agreement (CEPA).
This was agreed between the two countries during the visit of the Union Minister for Commerce and Industry, Piyush Goyal to Oman.
Piyush Goyal was on a two-day official visit to Oman from 27-28 January 2025.
11th Session of the India-Oman Joint Commission Meeting
Piyush Goyal was in Oman to attend the 11th Session of the India-Oman Joint Commission Meeting held in the Omani capital city of Muscat. The meeting was co-chaired by Piyush Goyal and Oman’s Minister of Commerce, Industry, and Investment Promotion Qais bin Mohammed Al Yousef.
During the meeting, both leaders discussed steps that need to be taken to promote bilateral cooperation in trade, investment, technology, food security, renewable energy, and other key areas.
Both the Ministers also agreed to expedite talks for an early signing of the India-Oman Comprehensive Economic Partnership Agreement (CEPA).
India has signed such an agreement with the United Arab Emirates (UAE) in the region.
Protocol on DTAA
- DTAA is signed between two nations to avoid double taxation and prevent tax evasion on income.
- Under the DTAA if a citizen/company of one country is working/investing in another country then the tax on his income has to be paid in one country only as per the provision of the DTAA.
- If an Indian working in Oman pays tax on his income in Oman then he will not pay tax on the same income in India. Similar benefits are extended to the Omani working in India or Omani companies investing in India.
- India and Oman already have signed the DTAA, and during Piyush Goyal's visit, a Protocol was signed to amend and upgrade the agreement to bring the agreement up to international standards simplifying tax procedures on cross-border taxation, and promoting greater cooperation in tax matters.
- A protocol is typically signed between countries so that they can update the DTAA without compromising on the effectiveness of the existing treaty.
India-Oman Joint Business Council (JBC) Meeting
- Piyush Goyal also participated in the India-Oman Joint Business Council (JBC) Meeting in Muscat.
- The JBC meeting was organised by the Oman Chamber of Commerce and Industry in association with the Federation of Indian Chambers of Commerce and Industry (FICCI). The JBC is held on the sidelines of the India-Oman Joint Commission Meeting.
India Oman Relationship
India and Oman have historical ties that go back to 5000 years.
Diplomatic relations were established between the two countries in 1955 and it was upgraded to Strategic Partnership in 2008.
In 2023, India was the 4th largest market for Oman’s crude oil exports.
India is the third largest source of import for Oman in 2023.
In 2023-24, India’s exports to Oman were $ 4.426 billion while imports from Oman were $ 4.520 billion
About the Sultanate of Oman
The Sultanate of Oman is an Arab Muslim country that lies on the southeastern coast of the Arabian Peninsula.
Its economy is dominated by the export of crude petroleum oils.
Capital: Muscat
Currency: Omani Rial
King /Sultan: Haitham bin Tariq Al Said
