Oman and Switzerland have reached an agreement that dividends can be taxed at a maximum rate of 15 percent at the source.
Also, dividend payments from significant holdings can be subject to a maximum of 5 percent tax in the source state, and dividend payments to pension funds and the contracting states will be taxable in the recipient’s state of domicile. Interest will be taxed at no more than 5 percent in the source state.
Provisions have been made for taxation exclusively in the recipient’s state of domicile for certain interest payments. Royalty payments are subject to a tax of not more than 8 percent in the source state. In addition, lower maximum tax rates for royalty payments agreed by Oman with third-party countries will apply for Switzerland, due to a most-favored-nation clause. Pensions also may be taxed at the source.
After negotiations were completed, a report on the new double-taxation agreement with Oman was submitted to the cantons and business associations for comment, of which they approved the signing.
The new agreement must still be approved by Parliament in both countries before it can be implemented.
