S.I. No. 485/2024 - Double Taxation Relief (Taxes on Income) (Sultanate of Oman) Order 2024
Notice of the making of this Statutory Instrument was published in | ||||||
“Iris Oifigiúil” of 20th September, 2024. | ||||||
WHEREAS it is enacted by section 826(1) (as amended by section 157 of the Finance Act 2010 (No. 5 of 2010)) of the Taxes Consolidation Act 1997 (No. 39 of 1997) that where the Government by order declare that arrangements specified in the order have been made with the government of any territory outside the State in relation to affording relief from double taxation in respect of income tax, corporation tax in respect of income and chargeable gains, capital gains tax or any taxes of a similar character imposed by the laws of the State or by the laws of that territory and, in the case of taxes of any kind or description imposed by the laws of the State or the laws of that territory, in relation to exchanging information for the purposes of the prevention and detection of tax evasion, granting relief from taxation under the laws of that territory to persons who are resident in the State for the purposes of tax or collecting and recovering tax (including interest, penalties and costs in connection with such tax) for the purposes of the prevention of tax evasion, and that it is expedient that those arrangements should have the force of law, and that the order so made is referred to in Part 1 of Schedule 24A of the Taxes Consolidation Act 1997 , then, subject to section 826 of that Act, the arrangements shall, notwithstanding any enactment, have the force of law as if such order were an Act of the Oireachtas on and from the date of the insertion of a reference to the order into Part 1 of Schedule 24A; | ||||||
AND WHEREAS it is further enacted by section 826 (6) of the Taxes Consolidation Act 1997 that where such an order is proposed to be made, a draft of the order shall be laid before Dáil Éireann and the order shall not be made until a resolution approving of the draft has been passed by Dáil Éireann; | ||||||
AND WHEREAS a draft of the following Order has been laid before Dáil Éireann and a resolution approving of the draft has been passed by Dáil Éireann; | ||||||
NOW, the Government, in exercise of the powers conferred on them by section 826(1) (as amended by section 157 of the Finance Act 2010 (No. 5 of 2010)) of the Taxes Consolidation Act 1997 , hereby order as follows: | ||||||
1. This Order may be cited as the Double Taxation Relief (Taxes on Income) (Sultanate of Oman) Order 2024. | ||||||
2. It is declared that – | ||||||
(a) the arrangements specified in the Agreement, the text of which is set out in the Schedule, have been made with the Government of the Sultanate of Oman in relation to – | ||||||
(i) affording relief from double taxation in respect of income tax, corporation tax in respect of income and chargeable gains, capital gains tax and any taxes of a similar character imposed by the laws of the State or by the laws of the Sultanate of Oman, and | ||||||
(ii) in the case of taxes of any kind or description imposed by the laws of the State or the laws of the Sultanate of Oman – | ||||||
(I) exchanging information for the purposes of the prevention and detection of tax evasion, and | ||||||
(II) granting relief from taxation under the laws of the Sultanate of Oman to persons who are resident in the State for the purposes of tax, | ||||||
and | ||||||
(b) it is expedient that those arrangements should have the force of law. | ||||||
SCHEDULE | ||||||
AGREEMENT BETWEEN | ||||||
THE SULTANATE OF OMAN AND IRELAND FOR THE ELIMINATION OF DOUBLE TAXATION | ||||||
WITH RESPECT TO TAXES ON INCOME AND THE PREVENTION OF TAX EVASION AND AVOIDANCE | ||||||
The Government of the Sultanate of Oman and the Government of Ireland, | ||||||
Desiring to further develop their economic relationship and to enhance their cooperation in tax matters, | ||||||
Intending to conclude an Agreement for the elimination of double taxation with respect to taxes on income without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance (including through treaty-shopping arrangements aimed at obtaining reliefs provided in this Agreement for the indirect benefit of residents of other States), | ||||||
Have agreed as follows: | ||||||
CHAPTER I | ||||||
SCOPE OF THE AGREEMENT | ||||||
Article 1 | ||||||
Persons Covered | ||||||
This Agreement shall apply to persons who are residents of one or both of the Contracting States. | ||||||
Article 2 | ||||||
Taxes Covered | ||||||
1. This Agreement shall apply to taxes on income imposed by each Contracting State, irrespective of the manner in which they are levied. | ||||||
2. There shall be regarded as taxes on income all taxes imposed on total income or on elements of income, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation. | ||||||
3. The existing taxes to which the Agreement shall apply are in particular: | ||||||
(a) in the case of Ireland: | ||||||
(i) the income tax; | ||||||
(ii) the universal social charge; | ||||||
(iii) the corporation tax; and | ||||||
(iv) the capital gains tax; | ||||||
(hereinafter referred to as “Irish tax”); | ||||||
(b) in the case of the Sultanate of Oman: | ||||||
(i) the income tax | ||||||
(hereinafter referred to as “Omani tax”). | ||||||
4. The Agreement shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes that have been made in their taxation laws. | ||||||
CHAPTER II | ||||||
DEFINITIONS | ||||||
Article 3 | ||||||
General Definitions | ||||||
1. For the purposes of this Agreement, unless the context otherwise requires: | ||||||
(a) the term “Ireland” includes any area outside the territorial waters of Ireland which has been or may hereafter be designated, under the laws of Ireland concerning the Exclusive Economic Zone and the Continental Shelf, as an area within which Ireland may exercise such sovereign rights and jurisdiction as are in conformity with international law; | ||||||
(b) the term “Sultanate of Oman” means the territory of the Sultanate of Oman and the islands belonging thereto, including the territorial waters and any area outside the territorial waters over which the Sultanate of Oman may, in accordance with international law and the laws of the Sultanate of Oman, exercise sovereign rights with respect to the exploration and exploitation of the natural resources of the sea-bed and the sub-soil and the superjacent waters; | ||||||
(c) the terms “a Contracting State” and “the other Contracting State” mean the Sultanate of Oman or Ireland, as the context requires; and the term “Contracting States” means the Sultanate of Oman and Ireland; | ||||||
(d) the term “person” includes an individual, a company and any other body of persons; | ||||||
(e) the term “company” means any body corporate or any entity that is treated as a body corporate for tax purposes; | ||||||
(f) the term “enterprise” applies to the carrying on of any business; | ||||||
(g) the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; | ||||||
(h) the term “international traffic” means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; | ||||||
(i) the term “national”, in relation to a Contracting State, means: | ||||||
(i) any individual possessing the nationality or citizenship of that Contracting State; and | ||||||
(ii) any legal person, partnership or association deriving its status as such from the laws in force in that Contracting State; | ||||||
(j) the term “competent authority” means: | ||||||
(i) in the case of Ireland, the Revenue Commissioners or their authorised representative; | ||||||
(ii) in the case of the Sultanate of Oman, the Chairman of Tax Authority or his authorised representative; | ||||||
(k) the term “business” includes the performance of professional services and of other activities of an independent character. | ||||||
2. As regards the application of the Agreement at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that Contracting State for the purposes of the taxes to which the Agreement applies, any meaning under the applicable tax laws of that Contracting State prevailing over a meaning given to the term under other laws of that Contracting State. | ||||||
Article 4 | ||||||
Resident | ||||||
1. For the purposes of this Agreement, the term “resident of a Contracting State” means any person who, under the laws of that Contracting State, is liable to tax therein by reason of his domicile, residence, place of management, place of incorporation or any other criterion of a similar nature, and also includes that Contracting State and any political subdivision or local authority or statutory body thereof. This term, however, does not include any person who is liable to tax in that Contracting State in respect only of income from sources in that Contracting State. | ||||||
2. Where by reason of the provisions of paragraph 1 of this Article an individual is a resident of both Contracting States, then his status shall be determined as follows: | ||||||
(a) he shall be deemed to be a resident only of the Contracting State in which he has a permanent home available to him; if he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident only of the Contracting State with which his personal and economic relations are closer (centre of vital interests); | ||||||
(b) if the Contracting State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either Contracting State, he shall be deemed to be a resident only of the Contracting State in which he has an habitual abode; | ||||||
(c) if he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident only of the Contracting State of which he is a national; | ||||||
(d) if the status of the resident cannot be determined by reason of subparagraphs (a) to (c) in that sequence, the competent authorities of the Contracting States shall settle the question by mutual agreement. | ||||||
3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall endeavor to determine by mutual agreement the Contracting State of which such person shall be deemed to be a resident for the purposes of the Agreement, having regard to its place of effective management, the place where it is incorporated or otherwise constituted and any other relevant factors. In the absence of such agreement, such person shall not be entitled to any relief or exemption from tax provided by this Agreement except to the extent and in such manner as may be agreed upon by the competent authorities of the Contracting States. | ||||||
Article 5 | ||||||
Permanent Establishment | ||||||
1. For the purposes of this Agreement, the term “permanent establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on. | ||||||
2. The term “permanent establishment” includes especially: | ||||||
(a) a place of management; | ||||||
(b) a branch; | ||||||
(c) an office; | ||||||
(d) a factory; | ||||||
(e) a workshop; and | ||||||
(f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources. | ||||||
3. The term “permanent establishment” also encompasses a building site or a construction or assembly or installation project or supervisory activity in connection therewith, but only if such site, project or activity lasts more than six (6) months. | ||||||
4. Notwithstanding the preceding provisions of this Article, the term “permanent establishment” shall be deemed not to include: | ||||||
(a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise; | ||||||
(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; | ||||||
(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; | ||||||
(d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise; | ||||||
(e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character; | ||||||
(f) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character. | ||||||
5. Notwithstanding the provisions of paragraphs 1 and 2 of this Article, where a person - other than an agent of an independent status to whom paragraph 6 of this Article applies - is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that Contracting State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 of this Article which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph. | ||||||
6. An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other Contracting State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise, and conditions are made or imposed between the enterprise and the agent in their commercial and financial relations which differ from those that would have been made between independent enterprises, he will not be considered an agent of an independent status within the meaning of this paragraph. | ||||||
7. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other Contracting State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other. | ||||||
CHAPTER III | ||||||
TAXATION OF INCOME | ||||||
Article 6 | ||||||
Income from Immovable Property | ||||||
1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other Contracting State. | ||||||
2. The term “immovable property” shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply. Usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources shall also be considered as “immovable property”. Ships and aircraft shall not be regarded as immovable property. | ||||||
3. The provisions of paragraph 1 of this Article shall apply to income derived from the direct use, letting, or use in any other form of immovable property. | ||||||
4. The provisions of paragraphs 1 and 3 of this Article shall also apply to the income from immovable property of an enterprise. | ||||||
Article 7 | ||||||
Business Profits | ||||||
1. The profits of an enterprise of a Contracting State shall be taxable only in that Contracting State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other Contracting State but only so much of them as is attributable to that permanent establishment. | ||||||
2. Subject to the provisions of paragraph 3 of this Article, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment. | ||||||
3. In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the Contracting State in which the permanent establishment is situated or elsewhere. | ||||||
4. Insofar as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 of this Article shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary. The method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this Article. | ||||||
5. No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise. | ||||||
6. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary. | ||||||
7. Where profits include items of income or gains which are dealt with separately in other Articles of this Agreement, then the provisions of those Articles shall not be affected by the provisions of this Article. | ||||||
Article 8 | ||||||
Shipping and Air Transport | ||||||
1. Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that Contracting State. | ||||||
2. For the purposes of this Article, the term “operation of ships or aircraft in international traffic” by an enterprise, includes: | ||||||
(a) the charter, lease or rental of ships or aircraft fully equipped, manned and supplied, and used in the operation of international traffic; | ||||||
(b) the charter, lease or rental on a bare boat basis of ships or aircraft, where such charter, lease or rental is incidental to the operation of ships or aircraft in international traffic; | ||||||
(c) the use, maintenance or rental of containers, where such use, maintenance or rental is incidental to the operation of ships or aircraft in international traffic; | ||||||
(d) interest on bank accounts directly connected with the operation of ships or aircraft in international traffic. | ||||||
3. The provisions of paragraph 1 of this Article shall also apply to profits from the participation in a pool, a joint business or an international operating agency. | ||||||
Article 9 | ||||||
Associated Enterprises | ||||||
1. Where | ||||||
(a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or | ||||||
(b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, | ||||||
and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. | ||||||
2. Where a Contracting State includes in the profits of an enterprise of that Contracting State - and taxes accordingly - profits on which an enterprise of the other Contracting State has been charged to tax in that other Contracting State and the profits so included are profits which would have accrued to the enterprise of the first mentioned Contracting State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other Contracting State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this Agreement and the competent authorities of the Contracting States shall if necessary consult each other. | ||||||
Article 10 | ||||||
Dividends | ||||||
1. Dividends paid by a company which is a resident of a Contracting State and beneficially owned by a resident of the other Contracting State may be taxed in that other Contracting State. | ||||||
2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that Contracting State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed: | ||||||
(a) zero per cent (0%) of the gross amount of the dividends if the beneficial owner is a company which holds directly at least ten per cent (10%) of the capital of the company paying the dividends; | ||||||
(b) ten per cent (10%) of the gross amount of the dividends in all other cases. | ||||||
This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid. | ||||||
3. Notwithstanding the provisions of paragraph 2, dividends paid by a company which is a resident of a Contracting State shall be exempt from tax in that Contracting State where it is paid to: | ||||||
(a) in the case of Ireland: | ||||||
(i) the Government of Ireland; | ||||||
(ii) the Central Bank of Ireland; | ||||||
(iii) the National Treasury Management Agency; | ||||||
(iv) the Ireland Strategic Investment Fund; | ||||||
(v) any pension fund organised under Irish law; | ||||||
(vi) any other statutory body or institution wholly or mainly owned by the Government of Ireland, as may be agreed from time to time between the competent authorities of the Contracting States. | ||||||
(b) in the case of the Sultanate of Oman: | ||||||
(i) the Government of the Sultanate of Oman; | ||||||
(ii) the Central Bank of Oman; | ||||||
(iii) the Oman Investment Authority; | ||||||
(iv) any pension fund organised under Omani law; | ||||||
(v) any other statutory body or institution wholly or mainly owned by the Government of the Sultanate of Oman, as may be agreed from time to time between the competent authorities of the Contracting States. | ||||||
4. The term “dividends” as used in this Article means income from shares or other rights, not being debt claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the Contracting State of which the company making the distribution is a resident. | ||||||
5. The provisions of paragraphs 1 and 2 of this Article shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident through a permanent establishment situated therein and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply. | ||||||
6. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other Contracting State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other Contracting State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment situated in that other Contracting State, nor subject the company’s undistributed profits to a tax on the company’s undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other Contracting State. | ||||||
Article 11 | ||||||
Interest | ||||||
1. Interest arising in a Contracting State and beneficially owned by a resident of the other Contracting State may be taxed in that other Contracting State. | ||||||
2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that Contracting State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed five per cent (5%) of the gross amount of the interest. | ||||||
3. Notwithstanding the provisions of paragraph 2 of this Article, interest arising in a Contracting State and paid to a resident of the other Contracting State who is the beneficial owner thereof shall be taxable only in that other Contracting State to the extent that such interest is paid: | ||||||
(a) to the Government of that other Contracting State, a political subdivision or local authority thereof or to the Central Bank of that other Contracting State; | ||||||
(b) in the case of Ireland, to the National Treasury Management Agency, the Ireland Strategic Investment Fund and any other statutory body or institution wholly or mainly owned by the Government of Ireland, as may be agreed from time to time between the competent authorities of the Contracting States; | ||||||
(c) in the case of the Sultanate of Oman, to the Oman Investment Authority and any other statutory body or institution wholly owned by the Government of the Sultanate of Oman, as may be agreed from time to time between the competent authorities of the Contracting States. | ||||||
(d) with respect to indebtedness arising as a consequence of the sale on credit of any equipment, merchandise or services; | ||||||
(e) on any loan of whatever kind granted by a bank; or | ||||||
(f) to any pension fund organised under Irish law or Omani law. | ||||||
4. The term “interest” as used in this Article means income from debt claims of every kind, whether or not secured by mortgage, and whether or not carrying a right to participate in the debtor’s profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures as well as all other income treated as income from money lent by the laws of the Contracting State in which the income arises but does not include any income which is treated as a dividend under Article 10. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article. | ||||||
5. The provisions of paragraphs 1 and 2 of this Article shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein and the debt claim in respect of which the interest is paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply. | ||||||
6. Interest shall be deemed to arise in a Contracting State when the payer is a resident of that Contracting State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment is situated. | ||||||
7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement. | ||||||
Article 12 | ||||||
Royalties | ||||||
1. Royalties arising in a Contracting State and beneficially owned by a resident of the other Contracting State may be taxed in that other Contracting State. | ||||||
2. However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that Contracting State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed eight per cent (8%) of the gross amount of the royalties. | ||||||
3. The term “royalties” as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work, including cinematographic films and recordings on tape or other media used for radio or television broadcasting or other means of reproduction or transmission, any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience. | ||||||
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply. | ||||||
5. Royalties shall be deemed to arise in a Contracting State where the payer is a resident of that Contracting State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment is situated. | ||||||
6. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement. | ||||||
Article 13 | ||||||
Capital Gains | ||||||
1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other Contracting State. | ||||||
2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise), may be taxed in that other Contracting State. | ||||||
3. Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic, or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that Contracting State. | ||||||
4. Gains derived by a resident of a Contracting State from the alienation of: | ||||||
(a) shares, other than shares quoted on a recognised stock exchange, deriving more than fifty per cent (50%) of their value directly or indirectly from immovable property situated in the other Contracting State; or | ||||||
(b) an interest in a partnership or trust deriving more than fifty per cent (50%) of its value directly or indirectly from immovable property situated in the other Contracting State, | ||||||
may be taxed in that other Contracting State. | ||||||
5. Gains from the alienation of any property, other than that referred to in paragraphs 1, 2, 3 and 4 of this Article, shall be taxable only in the Contracting State of which the alienator is a resident. | ||||||
Article 14 | ||||||
Income from Employment | ||||||
1. Subject to the provisions of Articles 15, 17 and 18, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that Contracting State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other Contracting State. | ||||||
2. Notwithstanding the provisions of paragraph 1 of this Article, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first mentioned Contracting State if: | ||||||
(a) the recipient is present in the other Contracting State for a period or periods not exceeding in the aggregate one hundred eighty three (183) days in any twelve (12) months period commencing or ending in the fiscal year concerned, and | ||||||
(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other Contracting State, and | ||||||
(c) the remuneration is not borne by a permanent establishment which the employer has in the other Contracting State. | ||||||
3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State may be taxed in that Contracting State. | ||||||
Article 15 | ||||||
Directors’ Fees | ||||||
Directors’ fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors or similar body of a company which is a resident of the other Contracting State may be taxed in that other Contracting State. | ||||||
Article 16 | ||||||
Entertainers and Sportspersons | ||||||
1. Notwithstanding the provisions of Article 14, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsperson, from that resident’s personal activities as such exercised in the other Contracting State, may be taxed in that other Contracting State. | ||||||
2. Where income in respect of personal activities exercised by an entertainer or a sportsperson acting as such accrues not to the entertainer or sportsperson but to another person, that income may, notwithstanding the provisions of Article 14, be taxed in the Contracting State in which the activities of the entertainer or sportsperson are exercised. | ||||||
3. Income derived by an entertainer or a sportsperson from activities exercised in a Contracting State shall be exempt from tax in that Contracting State, if the visit to that Contracting State is supported wholly or mainly by public funds of the other Contracting State or any political subdivision or local authority or statutory body thereof. | ||||||
Article 17 | ||||||
Pensions and Annuities | ||||||
1. Subject to the provisions of paragraph 2 of Article 18, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment and any annuity paid to such a resident shall be taxable only in that Contracting State. | ||||||
2. The term “annuity” means a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time under an obligation to make the payments in return for adequate and full consideration in money or money’s worth. | ||||||
3. Notwithstanding the provisions of paragraph 1, pensions and other similar remuneration paid to a resident of a Contracting State and any annuity paid to such a resident may also be taxed in the Contracting State from which they arise, if they are not taxed in the first-mentioned Contracting State. | ||||||
Article 18 | ||||||
Government Service | ||||||
1. (a) Salaries, wages and other similar remuneration, other than a pension, paid by a Contracting State or political subdivision or local authority or statutory body thereof to an individual in respect of services rendered to that Contracting State or subdivision or authority or body shall be taxable only in that Contracting State. | ||||||
(b) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that Contracting State and the individual is a resident of that Contracting State who: | ||||||
(i) is a national of that Contracting State; or | ||||||
(ii) did not become a resident of that Contracting State solely for the purpose of rendering the services. | ||||||
2. (a) Any pension paid by, or out of funds created by, a Contracting State or political subdivision or local authority or statutory body thereof to an individual in respect of services rendered to that Contracting State or subdivision or authority or body shall be taxable only in that Contracting State. | ||||||
(b) However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that Contracting State. | ||||||
3. The provisions of Articles 14, 15, 16 and 17 shall apply to salaries, wages and other similar remuneration, and to pensions, in respect of services rendered in connection with a business carried on by a Contracting State or political subdivision or local authority or statutory body thereof. | ||||||
Article 19 | ||||||
Students and Apprentices | ||||||
Payments which a student or business apprentice who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first mentioned Contracting State solely for the purpose of his education or training receives for the purpose of his maintenance, education or training shall not be taxed in that first-mentioned Contracting State, provided that such payments arise from sources outside that Contracting State. | ||||||
Article 20 | ||||||
Other Income | ||||||
1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Agreement shall be taxable only in that Contracting State. | ||||||
2. The provisions of paragraph 1 of this Article shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6 of this Agreement, if the beneficial owner of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein and the right or property in respect of which the income is paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 of this Agreement shall apply. | ||||||
Article 21 | ||||||
Miscellaneous Rules Applicable to Certain Offshore Activities | ||||||
1. The provisions of this Article shall apply notwithstanding any other provision of this Agreement where activities (in this Article called “relevant activities”) are carried on offshore in connection with the exploration or exploitation of the sea bed and subsoil and their natural resources situated in a Contracting State. | ||||||
2. An enterprise of a Contracting State which carries on relevant activities in the other Contracting State shall, subject to paragraph 3, be deemed to be carrying on business in that other Contracting State through a permanent establishment situated therein. | ||||||
3. Relevant activities which are carried on by an enterprise of a Contracting State in the other Contracting State for a period or periods not exceeding in the aggregate thirty (30) days within any period of twelve (12) months shall not constitute the carrying on of business through a permanent establishment situated therein. For the purposes of this paragraph: | ||||||
(a) where an enterprise of a Contracting State carrying on relevant activities in the other Contracting State is associated with another enterprise carrying on substantially similar relevant activities there, the former enterprise shall be deemed to be carrying on all such activities of the latter enterprise, except to the extent that those activities are carried on at the same time as its own activities; | ||||||
(b) an enterprise shall be regarded as associated with another enterprise if one participates directly or indirectly in the management, control or capital of the other or if the same persons participate directly or indirectly in the management, control or capital of both enterprises. | ||||||
4. Salaries, wages and similar remuneration derived by a resident of a Contracting State in respect of an employment connected with relevant activities in the other Contracting State may, to the extent that the duties are performed offshore in that other Contracting State, be taxed in that other Contracting State. | ||||||
5. Gains derived by a resident of a Contracting State from the alienation of: | ||||||
(a) exploration or exploitation rights; or | ||||||
(b) shares (or comparable instruments) deriving their value or the greater part of their value directly or indirectly from such rights, | ||||||
may be taxed in that other Contracting State. | ||||||
In this paragraph “exploration or exploitation rights” mean rights to assets to be produced by the exploration or exploitation of the seabed or subsoil or their natural resources in the other Contracting State, including rights to interests in or to the benefit of such assets. | ||||||
CHAPTER IV | ||||||
METHODS FOR THE ELIMINATION OF DOUBLE TAXATION | ||||||
Article 22 | ||||||
Elimination of Double Taxation | ||||||
1. Subject to the provisions of the laws of Ireland regarding the allowance as a credit against Irish tax of tax payable in a territory outside Ireland (which shall not affect the general principle hereof) - | ||||||
(a) Omani tax payable under the laws of the Sultanate of Oman and in accordance with this Agreement, whether directly or by deduction, on profits, income or gains from sources within the Sultanate of Oman (excluding in the case of a dividend tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any Irish tax computed by reference to the same profits, income or gains by reference to which Omani tax is computed; | ||||||
(b) in the case of a dividend paid by a company which is a resident of the Sultanate of Oman to a company which is a resident of Ireland and which controls directly or indirectly 5 per cent or more of the voting power in the company paying the dividend, the credit shall take into account (in addition to any Omani tax creditable under the provisions of subparagraph (a)) Omani tax payable by the company in respect of the profits out of which such dividend is paid. | ||||||
2. In the Sultanate of Oman, double taxation shall be eliminated as follows: | ||||||
Where a resident of the Sultanate of Oman derives income which, in accordance with the provisions of this Agreement, may be taxed in Ireland, the Sultanate of Oman shall allow as a deduction from the tax on the income of that resident an amount equal to the income tax paid in Ireland, whether directly or by deduction. Such deduction shall not, however, exceed that part of the income tax (as computed before the deduction is given) which is attributable to the income which may be taxed in Ireland. | ||||||
3. For the purposes of paragraphs 1 and 2 profits, income and capital gains owned by a resident of a Contracting State which may be taxed in the other Contracting State in accordance with this Agreement shall be deemed to be derived from sources in that other Contracting State. | ||||||
4. Where, in accordance with any provision of this Agreement, income derived by a resident of a Contracting State is exempt from tax in that Contracting State, that Contracting State may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income. | ||||||
CHAPTER V | ||||||
SPECIAL PROVISIONS | ||||||
Article 23 | ||||||
Entitlement to Benefits | ||||||
1. Notwithstanding the other provisions of this Agreement, a benefit under this Agreement shall not be granted in respect of an item of income if it is reasonable to conclude, having regard to all relevant facts and circumstances, that obtaining that benefit was one of the principal purposes of any arrangement or transaction that resulted directly or indirectly in that benefit, unless it is established that granting that benefit in these circumstances would be in accordance with the object and purpose of the relevant provisions of this Agreement. | ||||||
2. Where a benefit under this Agreement is denied to a person under paragraph 1, the competent authority of the Contracting State that would otherwise have granted this benefit shall nevertheless treat that person as being entitled to this benefit, or to different benefits with respect to a specific item of income, if such competent authority, upon request from that person and after consideration of the relevant facts and circumstances, determines that such benefits would have been granted in the absence of the transaction or arrangement referred to in paragraph 1. | ||||||
3. The competent authority of a Contracting State shall consult with the competent authority of the other Contracting State before denying a benefit under paragraph 1 or rejecting a request made under paragraph 2. | ||||||
Article 24 | ||||||
Non Discrimination | ||||||
1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other Contracting State in the same circumstances, in particular with respect to residence, are or may be subjected. This provision shall, notwithstanding the provisions of Article 1, also apply to persons who are not residents of one or both of the Contracting States. | ||||||
2. Stateless persons who are residents of a Contracting State shall not be subjected in either Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of the State concerned in the same circumstances, in particular with respect to residence, are or may be subjected. | ||||||
3. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other Contracting State than the taxation levied on enterprises of that other Contracting State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents. | ||||||
4. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, or paragraph 6 of Article 12, apply, interest, royalties, and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first mentioned Contracting State. | ||||||
5. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first mentioned Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first mentioned Contracting State are or may be subjected. | ||||||
6. The provisions of this Article shall, notwithstanding the provisions of Article 2, apply to taxes of every kind and description. | ||||||
Article 25 | ||||||
Mutual Agreement Procedure | ||||||
1. Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Agreement, he may, irrespective of the remedies provided by the domestic law of those Contracting States, present his case to the competent authority of either Contracting State. The case must be presented within three (3) years from the first notification of the action resulting in taxation not in accordance with the provisions of the Agreement. | ||||||
2. The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States. | ||||||
3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Agreement. They may also consult together for the elimination of double taxation in cases not provided for in the Agreement. | ||||||
4. The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. | ||||||
Article 26 | ||||||
Exchange of Information | ||||||
1. The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Agreement or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Agreement. The exchange of information is not restricted by Articles 1 and 2 of this Agreement. | ||||||
2. Any information received under paragraph 1 of this Article by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that Contracting State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1 of this Article, or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. Notwithstanding the foregoing, information received by a Contracting State may be used for other purposes when such information may be used for such other purposes under the laws of both Contracting States and the competent authority of the supplying Contracting State authorises such use. | ||||||
3. In no case shall the provisions of paragraphs 1 and 2 of this Article be construed so as to impose on a Contracting State the obligation: | ||||||
(a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State; | ||||||
(b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; | ||||||
(c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public). | ||||||
4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other Contracting State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 of this Article but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information. | ||||||
5. In no case shall the provisions of paragraph 3 of this Article be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person. | ||||||
Article 27 | ||||||
Members of Diplomatic Missions and Consular Posts | ||||||
Nothing in this Agreement shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements. | ||||||
Article 28 | ||||||
Protocol | ||||||
The attached Protocol is an integral part of this Agreement. | ||||||
CHAPTER VI | ||||||
FINAL PROVISIONS | ||||||
Article 29 | ||||||
Entry into Force | ||||||
Each of the Contracting States shall notify the other Contracting State in writing through diplomatic channels of the completion of the procedures required by its law for the bringing into force of this Agreement. This Agreement shall enter into force on the date of the later of these notifications and shall thereupon have effect: | ||||||
(a) in Ireland: | ||||||
(i) in respect of income tax, the universal social charge and capital gains tax, for any year of assessment beginning on or after the first day of January next following the date on which this Agreement enters into force, and | ||||||
(ii) in respect of corporation tax, for any financial year beginning on or after the first day of January next following the date on which this Agreement enters into force; | ||||||
(b) in the Sultanate of Oman: | ||||||
(i) in respect of taxes withheld at source, for amounts paid or credited on or after the first day of January next following the date on which this Agreement enters into force, and | ||||||
(ii) in respect of other taxes, for any tax year commencing on or after the first day of January next following the date on which this Agreement enters into force. | ||||||
Article 30 | ||||||
Termination | ||||||
This Agreement shall remain in force until terminated by one of the Contracting States. Either Contracting State may terminate the Agreement through diplomatic channels, by giving a written notice of termination at least six (6) months before the end of any calendar year after the period of five (5) years from the date on which the Agreement enters into force. | ||||||
In such event, the Agreement shall cease to have effect: | ||||||
(a) in Ireland: | ||||||
(i) in respect of income tax, the universal social charge and capital gains tax, for any year of assessment beginning on or after the first day of January in the calendar year immediately following that in which the notice of such termination is given, and | ||||||
(ii) in respect of corporation tax, for any financial year beginning on or after the first day of January in the calendar year immediately following that in which the notice of such termination is given; | ||||||
(b) in the Sultanate of Oman: | ||||||
(i) in respect of taxes withheld at source, for amounts paid or credited on or after the first day of January in the calendar year immediately following that in which the notice of such termination is given, and | ||||||
(ii) in respect of other taxes, for any tax year commencing on or after the first day of January in the calendar year immediately following that in which the notice of such termination is given. | ||||||
IN WITNESS WHEREOF the undersigned, duly authorised thereto, have signed this Agreement. | ||||||
Done at Muscat the 30th day of May 2024 AH, corresponding to 22nd Dhul Qadah 1445 in two identical originals each in the Arabic and English languages, both texts being equally authoritative. In case of discrepancy between the texts or in interpretation, the English text shall prevail. | ||||||
| ||||||
PROTOCOL AGREEMENT BETWEEN | ||||||
THE SULTANATE OF OMAN AND IRELAND FOR THE ELIMINATION OF DOUBLE TAXATION | ||||||
WITH RESPECT TO TAXES ON INCOME AND | ||||||
THE PREVENTION OF TAX EVASION AND AVOIDANCE | ||||||
On the date of signing of the Agreement between the Sultanate of Oman and Ireland for the Elimination of Double Taxation with respects to Taxes on Income and the Prevention of Tax Evasion and Avoidance (hereinafter referred to as “the Agreement”), the signatories have agreed on the following provisions which shall form an integral part of the said Agreement: | ||||||
1. With reference to the Agreement: | ||||||
Where, under any provision of this Agreement, a partnership is entitled to exemption from Irish tax as resident of the Sultanate of Oman on any income, such a provision shall not be construed as restricting the right of Ireland to charge any member of the partnership, being a person who is resident in Ireland for the purposes of Irish tax (whether or not he is also resident in the Sultanate of Oman for the purposes of Omani tax), to tax on his share of the income of the partnership; but any such income shall be deemed for the purposes of Article 22 to be income from sources within the Sultanate of Oman. | ||||||
2. With reference to Article 4: | ||||||
A Common Contractual Fund established in Ireland shall not be regarded as a resident of Ireland and shall be treated as fiscally transparent for the purposes of granting treaty benefits. | ||||||
3. With reference to Article 4: | ||||||
It is understood that it is the following individuals that shall be regarded as a resident of the Sultanate of Oman entitled to claim the benefits provided by this Agreement: | ||||||
(a) An individual who has his domicile or residence in the Sultanate of Oman and is a national thereof or who is resident in the Sultanate of Oman for a period of five (5) years or more; | ||||||
(b) Any individual if that individual shall pay income tax in the Sultanate of Oman on income by reason of domicile, residence or any other criterion of a similar nature, where that individual is in receipt of income. | ||||||
4. With reference to Articles 4, 16 and 18: | ||||||
For the purposes of paragraph 1 of Article 4, paragraph 3 of Article 16 and Article 18, it is understood that the term “statutory body” shall only apply to the Sultanate of Oman and means a body constituted under Royal Decree of the Sultanate of Oman and wholly owned by the Government of the Sultanate of Oman. | ||||||
5. With reference to Article 6: | ||||||
It is understood that the term “agriculture” includes the breeding and cultivation of fish. | ||||||
6. With reference to Article 7: | ||||||
It is understood that the provisions of paragraph 3 do not prevent the Contracting State in which the permanent establishment is situated from applying the provisions of laws and regulations of that Contracting State relating to deductions when determining the taxable income of the permanent establishment for the tax purposes of that Contracting State. | ||||||
7. With reference to paragraph 3 of Article 12: | ||||||
It is understood that the term “the use of, or the right to use, industrial, commercial or scientific equipment” does not include the rental of aircraft or aircraft engines. | ||||||
8. With reference of paragraph 5 of Article 13: | ||||||
Where an individual: | ||||||
(a) ceases to be resident of a Contracting State, | ||||||
(b) disposes of property acquired prior to the first day of the year in which he ceased to be resident of the Contracting States as mentioned in subparagraph (a), and | ||||||
(c) becomes resident again of the Contracting State within five (5) years of ceasing to be so resident, | ||||||
the provisions of paragraph 5 shall not affect the right of the Contracting State to tax the individual according to its law by reference to that disposal. | ||||||
| ||||||
GIVEN under the Official Seal of the Government, | ||||||
18 September, 2024. | ||||||
SIMON HARRIS, | ||||||
Taoiseach. |
