Executive Summary
On 4 November 2026, Oman and Jersey signed a comprehensive double taxation agreement aligned with the OECD Model Tax Convention, marking a significant expansion of Oman’s treaty network beyond 40 existing agreements. The pact introduces reduced withholding tax rates on cross-border dividends, interest, and royalties, incorporates anti-abuse provisions including a limitation on benefits clause, and establishes mutual agreement procedures and information exchange mechanisms meeting OECD transparency standards.
Important Updates
Oman and Jersey Sign Agreement to Eliminate Double Taxation
The Sultanate of Oman and the Bailiwick of Jersey formalized an Agreement for the Elimination of Double Taxation with Respect to Taxes on Income on 4 November 2026, under the auspices of the Oman Tax Authority (OTA). The Agreement follows the OECD Model Tax Convention and aims to prevent double taxation and fiscal evasion concerning income taxes imposed by both jurisdictions. It represents a continued expansion of Oman’s double taxation agreement (DTA) network, which already encompasses over 40 treaties. The legal reference will be published in the Official Gazette upon ratification, with the effective date typically falling on the first day of the second month following the exchange of instruments of ratification, or as specified in the Agreement’s entry-into-force provisions.
The Agreement allocates taxing rights across key income categories including business profits, dividends, interest, royalties, capital gains, and employment income. Notable provisions include reduced withholding tax rates: dividends may be capped at a maximum 5% for beneficial owners holding a significant shareholding threshold (typically 10% or more), with a higher rate (e.g., 10%) for other cases; interest and royalties are likely capped at 5% or 10%. The treaty incorporates a limitation on benefits (LOB) clause to prevent treaty shopping, a mutual agreement procedure (MAP) for dispute resolution, and exchange of information (EOI) provisions aligned with OECD standards. Relief from double taxation will be provided via credit or exemption methods without altering domestic tax rates.
The Agreement directly impacts multinational enterprises and investors with cross-border operations between Oman and Jersey, particularly in financial services, investment funds, holding companies, and shipping sectors. Omani companies investing in Jersey or receiving Jersey-sourced income will benefit from reduced withholding taxes, as will Jersey residents deriving income from Oman. Taxpayers must obtain a valid Certificate of Residence from their competent authority and submit it before payment dates to claim treaty benefits. The OTA will issue guidance on claim processes, forms, and deadlines. Ratification requires a Royal Decree in Oman and States Assembly approval in Jersey. Once in force, provisions apply to taxes withheld on or after the first day of the second month following entry into force, or for other taxes, for taxable periods beginning on or after that date. Non-compliance with documentation requirements risks denial of treaty benefits and application of Oman’s domestic withholding tax rates (currently 10% for dividends, interest, and royalties). Taxpayers should monitor the Official Gazette for the ratification decree and OTA circulars announcing the effective date.
Sources: Oman Tax Authority
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.