Thursday, February 11, 2010
The Omani government has announced that Sultan Qaboos bin Said has passed Royal Decree No. 15/2010 ratifying the protocol amending the double tax convention in place with the United Kingdom since February 1998.
The protocol was signed on November 26, 2009 by Stephen Timms, Financial Secretary to the UK Treasury and Ahmed Abdulnabi Maki, Omanís Economy Minister. The new protocol removes the withholding tax on dividends (previously a maximum of 10%), removes the 15% percent rate for UK-REITs, and provides a withholding rate of 8% on royalties. The agreement also incorporates tax information exchange provisions in line with the OECD standard on transparency and tax information exchange.
As soon as the UK authorities are notified of the documentís ratification, the protocol will immediately enter into force, except for taxes withheld at source, for which it will have effect in respect of amounts paid on or after January 1, 2011.