Latest news with #DTAAs
Economic Times
30-06-2025
- Business
- Economic Times
India, Oman revise DTAA: What's the income tax impact on professionals earning in both countries?
iStock This move will ensure that taxpayers who are financially active in both India and Oman are not unfairly taxed twice on the same income If you earn income in both India and Oman—say through employment in Oman and investments in India—and pay taxes in India, there's good news, whether you're a salaried professional, business owner, or freelancer. Both nations have revised their Double Taxation Avoidance Agreement (DTAA), originally signed in 1997, to reflect today's global tax norms and economic conditions. This update will be effective from 28 May 2025, ensuring that taxpayers aren't unfairly taxed twice on the same income in India and Oman. This brings relief to individuals and businesses working across both countries by creating clear rules about where and how income will be taxed. Oman will be the first country in the Gulf Cooperation Council (GCC) to start levying personal income tax at the rate of 5% for high income earners. The tax proposed with effect from January 2028 would be applicable for income above OMR 42,000. Until now, GCC nations, including Bahrain, Kuwait, Qatar, Saudi Arabia, and the UAE, have relied mainly on oil exports and have not imposed personal income tax. After the introduction of GCC VAT and corporate income tax, introduction of personal income tax seems to be the next step towards expanding sources of revenue for the government. India has DTAA pacts with multiple countries Comprehensive DTAAs cover all income types, while others apply to limited or specific cases. 'The revision aims to promote crossborder investments and technology transfer by lowering tax rates on royalties and fees for technical services from 15% to 10%. Further, updates have been made in the form of changes in certain definitions, mutual agreement procedures (MAP) and enhancing the framework for information exchange between the two jurisdictions. The agreement has been amended to adapt to the changing economic conditions and global tax reforms, aligning it with the current economic realities,' says Pankaj Agrawal, Associate Director, Global People Solutions, Grand Thornton.'The revised India-Oman tax treaty is a positive move for fair and clear taxation. It also prevents misuse of the treaty and makes information sharing stronger, helping honest businesses and reducing tax evasion,' says Sudhir Kaushik, Cofounder & CEO, important change is the introduction of a non-discrimination clause, which guarantees equal tax treatment for residents of both countries. So, for example, an Indian company operating in Oman will not face a higher tax burden than a comparable Omani firm. The treaty strengthens information exchange mechanisms between the two countries. Tax authorities will now share data more freely, even from banks and financial intermediaries, making it harder to hide income across borders. The revised agreement includes a better MAP to resolve tax disputes more efficiently. It also introduces new rules to prevent abuse of treaty benefits by third-country entities through treaty both nations will assist each other in tax collection. If someone owes tax in India and relocates to Oman, the local authorities can now help recover that amount and vice versa.
Time of India
30-06-2025
- Business
- Time of India
India, Oman revise DTAA: What's the income tax impact on professionals earning in both countries?
India has DTAA pacts with multiple countries Academy Empower your mind, elevate your skills If you earn income in both India and Oman—say through employment in Oman and investments in India—and pay taxes in India, there's good news, whether you're a salaried professional, business owner, or nations have revised their Double Taxation Avoidance Agreement (DTAA), originally signed in 1997, to reflect today's global tax norms and economic conditions. This update will be effective from 28 May 2025, ensuring that taxpayers aren't unfairly taxed twice on the same income in India and Oman. This brings relief to individuals and businesses working across both countries by creating clear rules about where and how income will be will be the first country in the Gulf Cooperation Council (GCC) to start levying personal income tax at the rate of 5% for high income tax proposed with effect from January 2028 would be applicable for income above OMR 42,000. Until now, GCC nations, including Bahrain, Kuwait, Qatar, Saudi Arabia, and the UAE, have relied mainly on oil exports and have not imposed personal income tax. After the introduction of GCC VAT and corporate income tax, introduction of personal income tax seems to be the next step towards expanding sources of revenue for the DTAAs cover all income types, while others apply to limited or specific cases.'The revision aims to promote crossborder investments and technology transfer by lowering tax rates on royalties and fees for technical services from 15% to 10%. Further, updates have been made in the form of changes in certain definitions, mutual agreement procedures (MAP) and enhancing the framework for information exchange between the two jurisdictions. The agreement has been amended to adapt to the changing economic conditions and global tax reforms, aligning it with the current economic realities,' says Pankaj Agrawal, Associate Director, Global People Solutions, Grand Thornton.'The revised India-Oman tax treaty is a positive move for fair and clear taxation. It also prevents misuse of the treaty and makes information sharing stronger, helping honest businesses and reducing tax evasion,' says Sudhir Kaushik, Cofounder & CEO, important change is the introduction of a non-discrimination clause, which guarantees equal tax treatment for residents of both countries. So, for example, an Indian company operating in Oman will not face a higher tax burden than a comparable Omani firm. The treaty strengthens information exchange mechanisms between the two countries. Tax authorities will now share data more freely, even from banks and financial intermediaries, making it harder to hide income across borders. The revised agreement includes a better MAP to resolve tax disputes more efficiently. It also introduces new rules to prevent abuse of treaty benefits by third-country entities through treaty both nations will assist each other in tax collection. If someone owes tax in India and relocates to Oman, the local authorities can now help recover that amount and vice versa.
Zawya
13-03-2025
- Business
- Zawya
Bahrain: Taxation agreement with Guernsey approved
Bahrain - Economic relations between Bahrain and Guernsey have been steadily expanding, with BD143 million in mutual capital exchanged between the two economies annually. The growing financial relationship reflects Bahrain's strategic efforts to strengthen international trade and investment partnerships, particularly in tax co-operation and financial transparency, the Shura Council heard yesterday. Bahrain's diplomatic engagement with Guernsey is conducted through Bahrain's embassy in the UK. Guernsey is one of the Channel Islands in the English Channel near the French coast, and is a self-governing British Crown dependency. Saudi Arabia had previously signed a tax treaty with Guernsey, aimed at eliminating double taxation on income and preventing tax evasion and avoidance. Bahrain is following a similar path, reinforcing its commitment to global financial integrity and investment-friendly policies. Shura Council members yesterday unanimously approved the Guernsey taxation agreement and referred it to His Majesty King Hamad for ratification. According to Shura's foreign affairs, defence and national security committee rapporteur Abdulla Al Nuaimi, the agreement ensures that income and capital are not taxed twice in Bahrain and Guernsey, which encourages cross-border trade and investment. 'Bahrain currently has 48 double taxation avoidance agreements (DTAAs) in effect with various countries worldwide,' said Mr Al Nuaimi. 'These are designed to reduce tax barriers and enhance the flow of capital between Bahrain and its global economic partners. 'By removing tax-related obstacles, the agreement with Guernsey is expected to boost mutual investment opportunities. 'Businesses and individuals from both jurisdictions can now invest with greater confidence, knowing they will not face double taxation on their income.' Mr Al Nuaimi pointed out that this move is aligned with Bahrain's broader strategy to establish itself as a leading financial and investment hub in the region. 'By fostering strong financial relationships with jurisdictions like Guernsey, Bahrain strengthens its position as a gateway for international investors looking to access Middle Eastern and global markets,' he said. 'The agreement allows for greater capital inflows into Bahrain, enhancing local economic growth and job creation. With BD143m already in mutual capital between the two economies annually, this agreement is expected to further accelerate financial co-operation and trade.' Mr Al Nuaimi said the Bahrain-Guernsey tax treaty marks a significant step in deepening financial and investment ties between the two economies. 'By eliminating double taxation, enhancing transparency, and facilitating capital flows, the agreement is set to unlock new opportunities for businesses and investors alike,' he said during the weekly session. Meanwhile, Bahrain and Hungary have taken a significant step towards strengthening their economic partnership with the Shura Council giving a unanimous go-ahead to an Investment Protection and Encouragement Agreement. Foreign affairs, defence and national security rapporteur Nancy Khadoury said such agreements provide legal protection for investors, a crucial factor when considering entry into new markets. 'This move will boost capital inflows into the country and create more job opportunities for Bahrainis,' she said. 'It also benefits Bahraini investors seeking opportunities in Hungary, a country known for its technology and innovation-driven industries.' Ms Khadoury said it also supports the government's broader goals of expanding Bahrain's international investment footprint. 'A key advantage of this agreement is that it does not impose direct financial obligations on Bahrain,' said Ms Khadoury. 'Instead, it provides a structured framework that ensures fair treatment for investors from both nations, reducing risks and enhancing business confidence.' Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
