July 13, 2004
An Agreement between Canada and Oman for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital was signed on June 30, 2004, in Muscat.
The Agreement limits the rate of withholding tax to 5% for dividends between affiliated companies, 15% for dividends in all other cases, and 10% for interest. The Agreement limits the rate of withholding tax to 10% for royalties and provides an exemption for certain copyright royalties and for certain payments made for the use of any patent, computer software, or for information concerning industrial, commercial or scientific experience.
The Agreement will enter into force once Canada and Oman have notified each other of the completion of all necessary measures to give the Agreement the force of law in their respective countries. The Agreement will have effect, in respect of tax withheld at source on amounts paid or credited to non-residents, as of the beginning of the first calendar year following that in which the Agreement enters into force; and, in respect of other taxes, for taxation years beginning after the calendar year in which the Agreement enters into force.
For further information contact:
Tax Legislation Division
Phone: (613) 992-5864