India Oman revised Tax Treaty Notified: Major Relief for NRIs and Businesses

The Ministry of Finance has issued a notification announcing the entry of a protocol amending the Double Taxation Avoidance (DTTA) between the Republic of India and the Sultanate of Oman. This makes sure that the taxpayer does not have to pay tax twice in the home country and the foreign country.

Applicability

The agreement was signed at Muscat on the 27th day of January, 2025. It has already entered into force on May 28, 2025.

Benefits

Besides avoidance of double taxation and prevention of tax evasion some of the Key benefits include witholding Tax on Royalties and technical fees slashed from 15 % to 10 % and Interest also reduced 10 %.

Oman to introduce 5% Income Tax

A few days back, Oman announced about introduction of a 5% personal income tax on individuals whose annual gross income is more than 42,000 Omani riyals. This new law will come into force from the beginning of 2028.