The Double Taxation Relief and International Tax Enforcement (Oman) Order 2010

Statutory Instruments

2010 No. 2687

Capital Gains Tax

Corporation Tax

Income Tax

The Double Taxation Relief and International Tax Enforcement (Oman) Order 2010

Made

10th November 2010

At the Court at Buckingham Palace, the 10th day of November 2010

Present,

The Queen’s Most Excellent Majesty in Council

A draft of this Order was laid before the House of Commons in accordance with section 5(2) of the Taxation (International and Other Provisions) Act 2010(1) and section 173(7) of the Finance Act 2006(2) and approved by a resolution of that House.

Accordingly, Her Majesty, in exercise of the powers conferred upon Her by section 2 of the Taxation (International and Other Provisions) Act 2010 and section 173(1) of the Finance Act 2006, by and with the advice of Her Privy Council, orders as follows—

Citation

1.  This Order may be cited as the Double Taxation Relief and International Tax Enforcement (Oman) Order 2010.

Double taxation and international tax enforcement arrangements to have effect

2.  It is declared that—

(a) the arrangements specified in the Protocol set out in the Schedule to this Order, which vary the agreement set out in the Schedule to the Double Taxation Relief (Taxes on Income) (Oman) Order 1998(3) have been made with the Government of the Sultanate of Oman;

(b) the arrangements have been made with a view to affording relief from double taxation in relation to income tax, corporation tax, capital gains tax and taxes of a similar character imposed by the laws of the Sultanate of Oman and for the purpose of assisting international tax enforcement; and

(c) it is expedient that those arrangements should have effect.

Judith Simpson

Clerk of the Privy Council

Article 2

SCHEDULE

EXPLANATORY NOTE

(This note is not part of the Order)

The Schedule to this Order contains a Protocol (“the Protocol”) which amends the agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Sultanate of Oman for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains, which was scheduled to the Double Taxation Relief (Taxes on Income) (Oman) Order 1998 (S.I. 1998/2568) (“the 1998 Agreement”). This Order brings the amending Protocol into effect.

The 1998 Agreement aims to eliminate the double taxation of income or gains arising in one country and paid to residents of the other country. It does this by allocating the taxing rights that each country has under its domestic law over the same income and gains, and/or by providing relief from double taxation. It also has specific measures which combat discriminatory tax treatment and provide for assistance in international tax enforcement.

The Protocol continues this approach. Article 10 of the 1998 Agreement is amended to provide for exemption from taxation of dividends in the circumstances set out in the amending provisions. Article 12 is replaced, and provides that royalties earned in the country of one treaty partner may be taxed in another. The newly inserted Article 27A provides rules under which the two countries may provide assistance to each other in the collection of their taxes. There are also other minor amendments to the 1998 Agreement.

Article 1 provides for citation.

Article 2 makes a declaration as to the effect and content of the arrangements set out in the Protocol.

The Protocol will enter into force on the date of the later of the notifications by each country of the completion of its legislative procedures. It shall have immediate effect, except for taxes withheld at source, for which it shall have effect in respect of amounts paid on or after January 1st next following the date of entry into force of the Protocol.

The date of entry into force will, in due course, be published in the London, Edinburgh and BelfastGazettes.

A full and final Impact Assessment has not been produced for this Order as a negligible impact on the private or voluntary sectors is foreseen.

(1)

2010 c. 8

(2)

2006 c. 25.

(3)

S.I. 1998/2568.