Russia's finance minister announced that the two countries had agreed to avoid double taxation, calling the action a crucial step in strengthening their economic ties.
"In 2022, the volume of mutual trade between our countries has already shown growth of 46%," Deputy Finance Minister Alexei Sazanov was quoted as saying. "It is necessary to further increase trade turnover and strengthen economic cooperation."
Russia has suggested terminating its double taxation treaties with what it refers to as "unfriendly countries" - those that have placed sanctions on Moscow as a result of its invasion of Ukraine.
It now has double taxation treaties—meant to stop the same income from being taxed in two states—with 84 nations, including those that have imposed sanctions notably the United States, the United Kingdom, Germany, France, and Japan.
According to the finance ministry, the agreement with Oman stipulates a general 15% withholding tax on dividend revenue and a lower rate of 10% for businesses having as least a 20% ownership in the dividend payer.
The ministry also stated that there is a 10% tax rate on royalties and interest income. The withholding tax on dividend and interest income would not apply to state-owned businesses or other types of public investment.
The deal ought to be approved this year and go into effect on January 1st, 2024.