Switzerland – Oman Tax Treaty Signed
On 22 May 2015, Switzerland and Oman signed an Income Tax Treaty.
The treaty will come into force after the two countries exchange ratification instruments. The provisions of the treaty will have effect from 1 January of the calendar year next following that in which the agreement enters into force.
In accordance with the treaty, the following withholding taxes will apply:
Dividends:
0% if the beneficial owner of the dividends is the other Contracting State, a political subdivision or the Central Bank thereof;
0% if the beneficial owner of the dividends is a pension scheme or pension fund of the other Contracting State;
0% if the beneficial owner of the dividends is in the case of the Sultanate of Oman, the State General Reserve Fund, the Omani Investment Fund and any other statutory body or institution wholly owned by the Government of the Sultanate of Oman, as may be agreed from time to time between the competent authorities of the Contracting States;
5% if the beneficial owner of the dividends is a company (other than a partnership) which holds directly at least 10% of the capital of the company paying the dividends.
15% in all other cases.
Interest:
0% if the interest is paid to the Government of that other State, a political subdivision or local authority thereof or to the Central Bank of that other State;
0% if the interest is paid in the case of the Sultanate of Oman, the State General Reserve Fund, the Omani Investment Fund and any other statutory body or institution wholly owned by the Government of the Sultanate of Oman, as may be agreed from time to time between the competent authorities of the Contracting States;
0% if the interest is paid with respect to indebtedness arising as a consequence of the sale on credit of any equipment, merchandise or services;
0% if the interest is paid on any loan of whatever kind granted by a bank;
0% if the interest is paid to a pension scheme or pension fund;
0% if the interest is paid on intercompany loans;
5% in all other cases.
Royalties: 8%.
