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Press Release

Japanese

January 9, 2014

Ministry of Finance

Tax Agreement with the Sultanate of Oman was Signed

[Provisional translation]

Today, the Government of Japan and the Government of the Sultanate of Oman signed the Agreement between the Government of Japan and the Government of the Sultanate of Oman for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income in Muscat. This Agreement is the first tax agreement concluded between Japan and the Sultanate of Oman, based on the recognition of an increasingly close economic relationship between the two countries.

For the purpose of relieving international double taxation, this Agreement clarifies the taxable scope in the two countries. In addition, the conclusion of this Agreement will enable the tax authorities to consult together on taxation issues arising in the two countries and to exchange information regarding tax matters effectively. It is expected to promote further mutual investments and economic exchanges between the two countries and to prevent international tax evasion and tax avoidance.

[Reference 1] Next Steps

After the necessary domestic procedures are carried out by each of the two countries (in the case of Japan, approval by the Diet will be necessary), each country will notify the other of the completion of respective procedures. This Agreement will enter into force on the first day of the next month following the date of receipt of the latter notification and will be applicable in Japan:

  • (1) with respect to taxes withheld at source, for amounts taxable on or after 1 January in the calendar year next following that in which this Agreement enters into force;

  • (2) with respect to taxes on income which are not withheld at source, as regards income for any taxable year beginning on or after 1 January in the calendar year next following that in which this Agreement enters into force; and

  • (3) with respect to other taxes, as regards taxes for any taxable year beginning on or after 1 January in the calendar year next following that in which this Agreement enters into force.

[Reference 2] Texts and Key Points of this Agreement