(MENAFN - Kuwait News Agency (KUNA)) A double-taxation avoidance agreement between Japan and Oman is expected to enter into force next month, the Japanese Foreign Ministry announced Monday.
Japan notified Oman on Sunday of the completion of its internal ratification procedures for the treaty on the avoidance of double taxation and the prevention of income tax evasion, the ministry said in a statement.
"All necessary procedures for the entry into force of the agreement have been completed, and the agreement will enter into force on September 1," it said.
The treaty, signed in January, adjusts the taxation rights between the two countries to avoid international double taxation arising from economic and human exchanges.
"Reflecting the strengthened economic relations between Japan and Oman, and to promote mutual investments, this agreement clarifies the limit of withholding tax rates imposed by the source state on dividends, interest and royalties," the ministry added.
Oman is an important supplier of energy, including oil and natural gas, to Japan.