India, Oman agree to amend tax treaty to promote greater cooperation
New Delhi, Jan 28, 2025
DTAA is signed between nations to avoid double taxation and prevent fiscal evasion as far as taxes on income is concerned
India and Oman on Tuesday signed an agreement to amend their taxation treaty — Double Taxation Avoidance Agreement (DTAA) — in an attempt to align it with “international standards on cross-border taxation, simplifying tax procedures, and promoting greater cooperation in tax matters”.
DTAA is signed between nations to avoid double taxation and prevent fiscal evasion as far as taxes on income are concerned.
The “protocol” to amend the tax treaty was signed during Commerce and Industry Minister Piyush Goyal’s two-day visit to Oman, which ended on Tuesday (January 28). A protocol is typically signed so that countries are able to update DTAA, while ensuring effectiveness of the treaty.
During his visit, Goyal and his counterpart Qais bin Mohammed Al Yousef agreed to expedite the discussions for an “early signing” of the Comprehensive Economic Partnership Agreement (CEPA).
“The two ministers also exchanged views on a bilateral India-Oman CEPA, which is under advanced stages of negotiations. Both ministers agreed to expedite the discussions for an early signing of the CEPA, which will be a new milestone in bilateral trade relations and has the potential to significantly scale up two-way trade and investments,” the commerce department said in a statement.
Formal negotiations for India-Oman CEPA started in November 2023 and were almost finalised early last year before the talks hit a deadlock.
Both ministers also co-chaired the 11th Session of the India-Oman Joint Commission Meeting (JCM), which saw productive discussions on enhancing bilateral cooperation in trade, investment, technology, food security, renewable energy, and other key areas.
They also did a detailed review of the bilateral trade and economic relations between both nations and identified concrete steps to further strengthen mutually beneficial business ties. Goyal also met a select group of chief executive officers (CEOs) and business leaders of Oman, the statement said.
Oman is India’s 30th largest trade partner, but the third-largest export destination among the six-member Gulf Cooperation Council (GCC) countries, after the UAE and Saudi Arabia. Bilateral trade between both countries stood at $8.9 billion in 2023-24 (FY24).
CONTOURS OF THE DEAL
> Attempt to align it with international standards on cross-border taxation
> 'Protocol’ signed during Piyush Goyal’s visit to Oman on Jan 27-28
> Agreement to expedite the discussions for an ‘early signing’ of CEPA
[The Business Standard]
