Double Tax Avoidance Agreement (DTAA) Between India and Oman

The DTAA between India and the Sultanate of Oman was signed on 2nd April, 1997, to avoid double taxation and fiscal evasion.

The main purpose of the DTAA is to ensure that individuals or entities earning income in either country can claim relief from taxation, either through credit or through exemption. It helps you to avoid double taxation on the same earnings.

Yes, a new protocol was signed in January 2025 and came into effect on the 28th of May 2025. It introduced modern elements like BEPS-aligned anti-abuse measures.

Under the updated DTAA, withholding tax rates on royalties and technical fees have been reduced from 15% to 10%, and came into effect from May 28th, 2025. It made cross-border service payments more cost-effective.

A Principal Purpose Test (PPT) is now a part of the DTAA tax treaty. It allows denial of the treaty benefits if the main purpose of a transaction is to claim the tax advantage.