OMAN: TANZANIA and Oman have signed a landmark agreement aimed at eliminating double taxation, preventing tax evasion and strengthening bilateral ties.
The agreement, recently formalised in Muscat, was signed by Tanzania’s Minister for Finance, Dr Mwigulu Nchemba and Oman’s Tax Authority Chairperson, Mr Nasser Al-Jashmi.
Designed to create a more attractive investment environment, the pact protects investors from the burden of double taxation and enhances transparency in financial transactions between the two nations. It is expected to boost economic and trade cooperation while opening new horizons for joint investments.
Dr Nchemba described the agreement as a significant milestone under President Samia Suluhu Hassan’s leadership, marking a key step in Tanzania’s efforts to open up its economy, foster bilateral trade and attract foreign investment.
“This legally binding framework eliminates double taxation on income and prevents tax evasion, facilitating smoother trade and investment flows between Dar es Salaam and Muscat,” Dr Nchemba stated.
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He explained that businesses operating in both Tanzania and Oman will now be taxed only once, addressing a longstanding barrier that hindered trade between the two countries.
This development is expected to encourage Foreign Direct Investment (FDI) from Oman, fostering industrial growth, stimulating economic sectors and creating employment opportunities in Tanzania.
The agreement will also enable Tanzanian investors to establish businesses in Oman without facing tax-related obstacles, while their operations remain protected from double taxation. Additionally, it creates opportunities for Tanzanian traders to expand their market reach into the Gulf region, enhancing Tanzania’s appeal as an investment destination.
Dr Nchemba noted Oman’s strong interest in Tanzania, particularly due to its strategic location as a gateway to landlocked countries in Eastern and Southern Africa. Tanzania and Oman signed seven Memoranda of Understanding (MoUs) in September during the Oman-Tanzanian Business Forum in Muscat.
The agreements span sectors including construction, real estate, agriculture, information and communication technology, renewable energy, investment services and consulting in both Tanzania and Zanzibar.
