The move is expected to boost trade between Moscow and Muscat
© Ministry of Finance of the Russian Federation
Russia and Oman have signed an agreement which eliminates double taxation in a sign of strengthening economic ties between the two countries, the Russian Finance Ministry announced on Thursday.
The treaty is designed to protect investors in both countries and to regulate the imposition of levies. The measure should boost investments and trade between Russia and Oman, according to Moscow.
“In 2022, the volume of mutual trade between our countries already showed growth of 46%,” Deputy Finance Minister Aleksey Sazanov noted. “It is necessary to further increase trade turnover and strengthen economic cooperation.”
The agreement establishes a general 15% withholding tax on dividend income and a reduced rate of 10% for companies holding at least a 20% stake in a dividend paying company, the Finance Ministry explained.
READ MORE: Indian firm bets big on Russian factory
The tax rate on interest income and royalties is set at 10%. State entities and state-owned companies as well as other forms of public investment will be exempt from the withholding tax on dividend and interest income, the ministry added.
The treaty is due to be ratified this year and will come into force from January 1, 2024.
For more stories on economy & finance visit RT’s business section
