Oman-Japan agreement on taxation accord to take effect on sept 1

August 26, 2014 9:17 am

Oman and Japan agreement on ‘Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income’ will come into force on September 1, 2014, Japan’s Official Gazette said last week. The agreement was signed on January 9 ahead of Prime Minister Shinzo Abe’s visit to Oman, Muscat Daily reported. Japan sent a notification through diplomatic channels on the completion of internal procedures on August 17. The agreement adjusts the taxation rights between Japan and Oman to avoid international double taxation arising from economic and human exchanges. Reflecting the strengthened economic relations between the two countries, and to promote mutual investment, this agreement clarifies the limit of withholding tax rates imposed by the source state on dividends, interest and royalties. It is expected to further strengthen the economic relations and human exchanges between Japan and Oman, and contribute to the prevention of fiscal evasion.