India, Oman To Amend Double Taxation Agreement Amid Talks On Comprehensive Free Trade Deal

India and Oman have agreed to amend their Double Taxation Avoidance Agreement (DTAA) to align with international cross-border taxation standards, streamline tax procedures, and enhance cooperation in tax-related matters, according to an official statement released on Tuesday (29 January), reported The Hindu.

The protocol to revise the India-Oman DTAA, originally implemented in 1997, was signed during Commerce and Industry Minister Piyush Goyal’s visit to Muscat.

“Both sides signed the protocol to amend the India-Oman DTAA, aligning it with international standards on cross-border taxation, simplifying tax procedures, and promoting greater cooperation in tax matters,” the Ministry of Commerce and Industry stated, quoted as saying by The Hindu.

Additionally, India and Oman have agreed to accelerate negotiations for a Comprehensive Economic Partnership Agreement (CEPA) to facilitate greater trade and investment opportunities.

The discussions, currently in advanced stages, were a key agenda during the India-Oman Joint Commission Meeting (JCM), where Goyal met with Oman’s Minister of Commerce, Industry, and Investment Promotion, Qais bin Mohammed Al Yousef.

Formal negotiations for the CEPA began in November 2023. The agreement aims to significantly reduce or eliminate customs duties on a wide range of goods while easing regulations to boost trade in services and investments.

India has already implemented a similar agreement with the UAE, which came into effect in May 2022.

Oman remains India’s third-largest export destination within the Gulf Cooperation Council (GCC).

However, bilateral trade declined from $12.39 billion in 2022-23 to $8.94 billion in 2023-24, with exports totalling $4.42 billion and imports at $4.5 billion.

Also Read: ISRO Hits 100th Launch Milestone With GSLV-F15 Successfully Deploying India's Next-Gen Navigation Satellite Into Orbit