The Finance Ministry on Wednesday announced that the Republic of Cyprus and the Sultanate of Oman have signed a double tax treaty.

According to the ministry, the treaty, which was officially signed on December 8, establishes a Double Taxation Avoidance Agreement (DTAA) and includes provisions to prevent fiscal evasion on income taxes.

The agreement was signed on behalf of Cyprus by Andreas S. Kakouris, permanent secretary at the Ministry of Foreign Affairs, and on behalf of Oman by the director general of the Ministry of Foreign Affairs.

“The agreement will contribute to the further development of commercial and economic relations, as well as the promotion of investments between the Republic of Cyprus and the Sultanate of Oman, and more broadly in the Middle East,” the statement said.

It added that the treaty ensures clear tax treatment for transactions between the two countries, “providing stability and certainty for investors“.

The agreement is based on the OECD Model Convention for the Elimination of Double Taxation on Income and on Capital, as well as the United Nations Model.

Moreover, it incorporates all minimum standards from the Base erosion and profit shifting (BEPS) relevant to bilateral treaties.

Expanding, maintaining, and updating Cyprus’ network of double taxation treaties is a top economic and political priority for the government, according to the announcement.

“These agreements significantly enhance and promote our country’s position as an international business centre,” the ministry stated.

It should be noted that earlier this year, the government also sought to hammer out the details for another double tax treaty.

Specifically, in late September, Cyprus and the Netherlands completed discussions for the signing of a treaty in relation to Curacao.

“We have today finalised the agreement between the Republic of Cyprus and the Kingdom of the Netherlands concerning Curacao, regarding the elimination of double taxation on income taxes and the prevention of tax evasion and avoidance,” the Finance Ministry said at the time.

The ministry added that the agreement is expected to be signed at a later date.

It should be noted that Curacao, formerly part of the Netherlands Antilles, gained autonomous status within the Kingdom of the Netherlands in 2010.