India and Oman have agreed to amend the Double Taxation Avoidance Agreement to align it with international standards on cross-border taxation, simplifying procedures, and promoting greater cooperation in tax matters, an official statement said on Tuesday.
A protocol to amend the India-Oman DTAA was signed during the visit of Commerce and Industry Minister Piyush Goyal to Muscat.
The treaty was implemented in 1997.
"Both sides signed the protocol to amend the India-Oman DTAA, aligning it with international standards on cross-border taxation, simplifying tax procedures, and promoting greater cooperation in tax matters," the commerce and industry ministry said.
The two countries have also agreed to expedite the discussions for an early signing of the proposed free trade agreement, which is under negotiations.
Goyal was in Muscat for the India-Oman Joint Commission Meeting with Oman's Minister of Commerce, Industry, and Investment Promotion Qais bin Mohammed Al Yousef.
"The two ministers exchanged views on a bilateral India-Oman Comprehensive Economic Partnership Agreement (CEPA), which is under advanced stages of negotiations," it said.
The pact is aimed at boosting two-way trade and investments.
The negotiations for the agreement, officially dubbed as Comprehensive Economic Partnership Agreement, formally began in November 2023.
In such agreements, two trading partners either significantly reduce or eliminate customs duties on a maximum number of goods traded between them. They also ease norms to promote trade in services and attract investments.
Oman is the third-largest export destination among the Gulf Cooperation Council countries for India. India already has a similar agreement with another GCC member UAE which came into effect in May 2022.
The bilateral trade has declined to $8.94 billion (exports $4.42 billion and imports $4.5 billion) in 2023-24 from $12.39 billion (exports $4.47 billion and imports $7.91 billion) in 2022-23.
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