The Republic of Cyprus and the Government of the Sultanate of Oman signed an agreement in Muscat on December 8 to prevent double taxation and tax evasion, according to a press release issued by the Finance Ministry on Wednesday.

This agreement aims to foster the development of trade and economic relations, while also promoting investments between Cyprus and Oman, as well as the broader Middle East region, the press release stated.

“The intergovernmental agreement ensures the straightforward tax treatment of transactions between the two states, providing stability and certainty to investors,” it added.

Signed by the Permanent Secretaries of the Foreign Ministries of both countries, the agreement is based on the OECD Model Convention for the Elimination of Double Taxation on Income and Capital, as well as the United Nations Model. It incorporates all minimum standards of the Base Erosion and Profit Shifting (BEPS) actions relevant to bilateral agreements, the press release noted.

The Finance Ministry emphasized the importance of expanding and maintaining the network of Double Taxation Agreements, highlighting that the addition of this significant agreement holds great economic and political importance for the Government. Such agreements, it added, further enhance Cyprus’s position as an international business hub.