Oman, Hungary sign treaty to avoid double taxation

Muscat: An agreement on avoiding double taxation and income-tax evasion was signed at the Ministry of Finance yesterday between the governments of the Sultanate and Hungary.
The agreement was signed by Darwish bin Ismaiel Al Balushi, Minister Responsible for Financial Affairs, and Hungary’s non-resident Ambassador to the Sultanate.
Al Balushi said that the signing of the agreement aims at regularising taxes for Omani and Hungary for individuals and companies operating in either countries, providing the proper legal and legislative environment for enhancing economic, business and investment relations and increasing the volume of bilateral trade.
The minister Responsible for Financial Affairs said that the agreement is the Sultanate’s 38th on the avoidance of double taxation. The Sultanate is seeking to sign the agreement with more countries as it is very important and will bring many benefits including enhancing the Sultanate’s competitiveness at the different markets, he added.
Saud bin Nasser aL- Shakili, Secretary General of Taxation said that the agreement includes reducing the tax imposed on some activities and some private establishments, especially if the Sultanate is a promoter of the project, such as the projects at which the State General Reserve Fund takes part.
The tax will be lower than what is applicable in Hungary.
The agreement also includes exempting the income generated from marine and air transport in both countries. This will benefit private sector in both countries as they will not pay taxes twice in the Sultanate and Hungary.
The signing ceremony was attended by Nasser bin Khamis al- Jashmi, Undersecretary of the Ministry of Finance, Saud al- Shakili, Secretary General of Taxation and a number of officials at the Ministry of Finance. It was also attended by a number of officials at the Hungarian Embassy.