Latest news with #India-Oman
Observer
5 days ago
- Business
- Observer
FTA with Oman almost finalised: Indian Minister
India's trade talks are in a 'very advanced' stage with the US, Oman, and the European Union, the country's Commerce and Industry Minister Piyush Goyal said on Saturday. Addressing reporters on Saturday, the minister said that the FTA with Oman is 'almost finalised', while negotiations with the EU and the US are 'making fast progress'. According to details on the Indian Embassy website, Indian The economic and commercial relations between India and Oman are robust and buoyant. Bilateral trade during FY 2023-24 reached US$8.947 billion and and for the FY 2024-25 reached US$10.613 billion. Investment flows, both ways, have been robust, as reflected in Numerous joint ventures have been established both in India and Oman. There are over 6,000 India-Oman joint ventures in Oman with an estimated investment of over US$776 million. Indian companies are investors in Oman, particularly at Sohar and Salalah Free Zones. The cumulative FDI equity inflow from Oman to India during April 2000 to March 2025 is US$605.57 million. Oman is India's 28th largest trading partner in FY 2024-2025, with total trade of US$10.61 billion, while India is Oman's third-largest non-oil export partner and fourth-largest in terms of imports. The main items of India's exports to Oman during the calendar year 2024 were light oils and preparations; Aluminium oxide other than artificial corundum; Rice; Boilers, machinery and mechanical appliances, parts thereof; Aeroplanes and Other aircraft and spacecraft; Electrical machinery and equipment and parts thereof; Other beauty / make up preparations; Plastic and articles thereof; Iron and Steel; Ceramic products, etc. The main items of India's imports from Oman during the calendar year 2024 were Petroleum oil crude; Liquefied Natural Gas; Urea, including fertilizer grade; Organic chemicals; Anhydrous ammonia; Sulphur, Earth and Stone, Plastering Materials, Lime; Plastic in primary forms.
Time of India
30-06-2025
- Business
- Time of India
India-Oman DTAA amended: What does the new tax treaty mean for salaried professionals, freelancers, and business owners? What experts say
India and Oman have revised their Double Taxation Avoidance Agreement (DTAA), first signed in 1997, to align with evolving global tax standards and cross-border economic realities. The updated pact, which comes into effect from May 28, 2025, aims to provide relief to individuals and businesses earning income in both countries by eliminating the risk of being taxed twice. The revised DTAA will benefit Indian residents with investments or professional engagements in Oman, and vice versa. This includes salaried professionals, freelancers, and business owners earning income across both jurisdictions, according to an ET report. 'The revision aims to promote cross-border investments and technology transfer by lowering tax rates on royalties and fees for technical services from 15% to 10%,' Pankaj Agrawal, Associate Director at Grant Thornton, told the financial daily 'Further, updates have been made in definitions, mutual agreement procedures (MAP), and enhanced information exchange between the jurisdictions,' he added. Sudhir Kaushik, Cofounder and CEO of said the revised India-Oman tax treaty is a 'positive move for fair and clear taxation' that also strengthens information sharing, helping honest taxpayers and reducing tax evasion. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Tìm hiểu thêm Undo He was quoted as saying that the agreement also includes a non-discrimination clause that ensures tax parity between Indian and Omani entities operating in each other's countries. The revised treaty includes a stronger MAP framework to resolve tax disputes more efficiently and introduces anti-abuse provisions to prevent treaty shopping. It also enhances data exchange protocols, including access to financial and banking information, making cross-border tax evasion more difficult. Oman will also become the first Gulf Cooperation Council (GCC) nation to introduce personal income tax. As per the proposed plan, from January 2028, Oman will levy a 5% income tax on individuals earning above OMR 42,000. Until now, GCC countries such as the UAE, Saudi Arabia, Qatar, and Kuwait have not imposed personal income tax, relying largely on oil revenues. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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.
Time of India
02-06-2025
- Business
- Time of India
India-Oman free trade pact may be signed soon: Piyush Goyal
Commerce and Industry Minister Piyush Goyal has indicated that India is likely to sign a free trade agreement (FTA) with Oman soon, as the talks between the two countries are making headway. "I think you will see some good news very soon on the Oman FTA," the minister told journalists here. The minister is on an official trip to France with the aim of boosting trade and investments and will also attend a ministerial meeting of the World Trade Organisation (WTO) on Tuesday. The talks for the free trade pact with Oman started in November 2023, and Goyal visited the Gulf country from January 27 to January 28. During the visit, Goyal co-chaired the 11th Session of the India-Oman Joint Commission Meeting. Qais bin Mohammed Al Yousef , Minister of Commerce, Industry, and Investment Promotion of the Sultanate of Oman. The meeting saw productive discussions on enhancing bilateral cooperation in trade, investment, technology, food security, renewable energy and other key areas. The two Ministers exchanged views on a bilateral India-Oman Comprehensive Economic Partnership Agreement (CEPA), which is at advanced stages of negotiations. Both Ministers agreed to expedite the discussions for an early signing of the CEPA, which will be a new milestone in bilateral trade relations and has the potential to significantly scale up two-way trade and investments. The Minister also held a productive bilateral meeting with Minister Qais during which he undertook a detailed review of the bilateral trade and economic relations between India and Oman and identified concrete steps to further strengthen the mutually beneficial business ties. On the sidelines of the visit, both sides signed the Protocol to amend the India-Oman Double Taxation Avoidance Agreement (DTAA), aligning it with international standards on cross-border taxation, simplifying tax procedures, and promoting greater cooperation in tax matters. Oman is the third-largest export destination for India among the Gulf Cooperation Council (GCC) countries. The bilateral trade was about USD 10.5 billion, comprising exports of USD 4 billion and imports to the tune of USD 6.54 billion in 2024-25.
