Τhe Republic of Cyprus and the Government of the Sultanate of Oman signed in Muscat an agreement for the avoidance of double taxation and the prevention of tax evasion, according to a press release issued by the Finance Ministry on Wednesday.

The agreement, signed on December 8, will contribute to the further development of trade and economic relations, as well as the promotion of investments between the Republic of Cyprus and the Sultanate of Oman, but also more broadly in the Middle East, the press release added.

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

The agreement, signed by the Permanent Secretaries of the two countries' Foreign Ministries, is based on the OECD Model Convention for the Elimination of Double Taxation on Income and on Capital, as well as the United Nations Model, and includes all the minimum standards of the Base Erosion and Profit Shifting (BEPS) actions that concern bilateral agreements, the press release noted.

The expansion, maintenance and updating of the network of Double Taxation Agreements, with the addition of yet another new and important agreement, “is of the highest economic and political importance for the Government”, as they contribute to the further strengthening and promotion of Cyprus as an international business center, the press release concluded.