Switzerland and Oman sign new tax treaty

Switzerland and Oman on May 22 signed a double taxation agreement, Switzerland’s Federal Department of Finance has announced.

The agreement sets the tax rate on dividends in the source country at 5 percent for shareholders with significant holdings, at zero for payments to government and pension funds, and at a 15 percent rate in other case.

Interest is taxed at no more than a 5 percent rate in the source state and is not taxed in some cases. Royalty payments are subject to tax rate of no more than 8 percent in the source state.

Pensions are taxed at the source and contributions to pension funds in the other country are deductible.

The agreement also contains provisions on exchange of information.

Before it can enter into force, the agreement must be approved by the parliaments of both countries.

See:

•   Switzerland and Oman sign new double taxation agreement