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In a significant step toward strengthening bilateral economic ties, the Sultanate of Oman and the Republic of Kazakhstan have signed a comprehensive agreement to avoid double taxation and prevent fiscal evasion related to income and capital taxes. The treaty is expected to bolster transparency, enhance investor confidence, and streamline cross-border financial activity between the two nations.
The agreement was signed in Kazakhstan by Oman’s Minister of Finance, H.E. Sultan bin Salim Al Habsi, and the President of Kazakhstan, H.E. Kassym-Jomart Tokayev, during the Minister’s official state visit.
Key Provisions and Strategic Implications
While the full treaty text has yet to be published, agreements of this nature typically cover:
- Elimination of Double Taxation on income such as dividends, interest, and royalties
- Information Exchange Provisions aligned with OECD standards for transparency
- Non-Discrimination Clauses ensuring equal tax treatment for foreign nationals and entities
- Defined Tax Residency Rules, reducing ambiguity in multi-jurisdictional operations
Tax professionals and multinationals should prepare for updates to withholding tax obligations, treaty benefits analysis, and permanent establishment (PE) thresholds once the treaty enters into force.
Why This Matters: Investment Strategy & Regional Positioning
For Oman, the agreement aligns with its Vision 2040 agenda, which emphasizes international economic integration and foreign investment. Kazakhstan, positioned at the crossroads of Eurasia, continues to position itself as a gateway between Asia and Europe through pro-investment reforms.
“This agreement sends a strong signal to international businesses and sovereign wealth funds alike: Oman and Kazakhstan are open for cross-border business under rules-based certainty,” said a Gulf-based international tax advisor familiar with the region.
Tax Landscape Synergies and Considerations
- Oman’s Reforms: The country has modernized its corporate tax system, introduced VAT, and committed to BEPS minimum standards.
- Kazakhstan’s Tax Evolution: Kazakhstan has expanded its network of treaties and recently restructured its tax code to encourage foreign direct investment.
Multinational corporations operating in sectors like energy, logistics, mining, and infrastructure—key for both economies—will be primary beneficiaries. The treaty also reduces barriers for sovereign funds, family offices, and asset managers exploring bilateral opportunities.
Next Steps
The agreement will now undergo ratification procedures in both countries. Once effective, it will form part of a growing global treaty network that supports OECD-aligned transparency, tax certainty, and cross-border mobility of capital.
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