DOUBLE TAXATION AGREEMENT BETWEEN SWITZERLAND AND OMAN
MUSCAT -The Double Taxation Agreement (DTA) between Switzerland and Oman aiming to increase economic ties officially came into force last month, according to the Swiss government.
Its provisions will be applicable from January 1, 2017, according to the government. The agreement was originally signed on May 22, 2015 before going through a ratification process.
H E Christian Winter, Switzerland’s Ambassador to Oman, earlier told Muscat Daily that the agreement reflects the importance Switzerland is giving to both Oman and the rest of the GCC.
Switzerland also has similar agreements with Kuwait, Qatar and UAE. “The DTA is expected to enhance economic and trade relations between Switzerland and Oman, notably by facilitating direct investments in both countries,” he said. Switzerland exports to Oman are around RO80mn to RO90mn a year, according to H E Winter.
In 2014, the largest share of Swiss products and goods exported to the sultanate consisted of watches (33 per cent), pharmaceutical products (29 per cent) and machinery (13 per cent). The agreement states that the source state can levy a tax on interest that shall not exceed ten percent of the gross amount. Royalties shall be taxed in the state of the recipient.
The DTA also contains a provision on the exchange of information upon request according to the internationally applicable standards. The pact is based on a convention adopted by the Organisation for Economic Cooperation and Development), an intergovernmental organisation of 35 countries formed to stimulate economic progress and world trade.
Switzerland and Oman share several other agreements.
An agreement on protecting investments has been in effect since 2005. Since November 2010, an agreement is in place offering visa exemptions to holders of diplomatic, special and service passports. The two countries have also cooperated against money laundering, environment and road police, according to the Swiss Department of Foreign Affairs.