Switzerland and Oman have signed a new double tax agreement (DTA) that sets withholding
tax rates for dividends, interest, and royalties income.
Under the DTA, dividends will be taxed at a maximum rate of 15 percent at source. Dividend
Payments from significant holdings will be subject to a five percent rate in the source state
Dividend payments to pension funds and the contracting state will be taxable solely in the
Recipient’s state of domicile.
Interest will be taxed at no more than five percent in the source state. Certain interest payments
Will be taxable only in the recipient’s state of domicile. Royalty payments will be subject to tax
of no more than eight percent in the source state. A most favoured nation clause will ensure that
lower maximum royalty tax rates agreed by Oman with third countries will also apply for Switzerland.
The DTA also includes provisions on the automatic exchange of information in line with the international
The cantons and business associations have approved the signing of the DTA. It must now be approved by
The parliament. Switzerland has signed 51 DTA’s and eight tax information exchange agreements (TIEA’s)
41 of these DTA’s and three TIEA’s are in force.
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