A new agreement on the avoidance of double taxation has been signed

Dec, 22 2023

The State Duma has approved the conclusion of an agreement on the avoidance of double taxation with Oman. Now all persons and companies registered in Russia or Oman will be taxed only in one of these countries.  The document has been in development since 2001, but its ratification was suspended by Russia in 2009 due to low tax rates and interest on income provided for in Oman. Full approval was achieved only this November.

The agreement was officially approved and ratified on November 29 and concerns, first of all, the elimination of double taxation with respect to income and the prevention of tax evasion. All information was posted on the website of the State Duma.

The document applies to taxes on total income or its components and is valid for persons residing, registered or temporarily staying in Russia or Oman. According to the statement posted on the website, this agreement will help attract investments.

In June, it became known that Russia and the UAE had also begun approving the parameters of the agreement. The Russian Ministry of Finance is in the final stage of negotiations with the UAE. At a meeting in Dubai on June 12, the parties agreed on the tax rates on dividends and interest income – 15% and 10%, respectively. These figures exceed the domestic Russian rates (15% and 20%). However, it has not yet been possible to agree on a royalty rate.

Russia signs agreements on the avoidance of double taxation with various countries in order to stimulate economic relations. In addition to Oman and the UAE, Russia is also going to conclude similar agreements with various Asian countries, some European countries and other regions. Despite the fact that some agreements have been suspended, the agreement on the avoidance of double taxation continues to partially operate with the United States, Cyprus, Great Britain, Canada, the Czech Republic, Poland, South Korea and Japan.

Author of the article
A new agreement on the avoidance of double taxation has been signed
Valentina Khlavich
Managing Partner
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