Tanzania and Oman Sign Double Taxation Agreement

On 15th December 2024, Tanzania and Oman signed an agreement to eliminate double taxation, prevent tax evasion, enhance economic cooperation, and facilitate investment between the two countries.

The signing ceremony took place at the headquarters of the Tax Authority in Muscat, Oman, during a working visit by Tanzania’s Minister of Finance, Dr. Mwigulu Lameck Nchemba. Dr. Nchemba represented the Government of Tanzania, while the Chairman of Oman’s Tax Authority, Mr. Nasser Al-Jashmi, signed on behalf of the Sultanate of Oman.

The agreement, formally known as the Agreement for the Elimination of Double Taxation with Respect to Taxes on Income and Prevention of Tax Avoidance and Evasion, will ensure that businesses and investors conducting activities between Tanzania and Oman are taxed only once on the same income, addressing a previous hurdle that discouraged bilateral trade.

Dr. Nchemba emphasized that this agreement marks a significant step in President Samia Suluhu Hassan’s ongoing efforts to open Tanzania’s economy to international investments.

The deal is expected to attract substantial capital from Oman, including investments by major family-owned conglomerates and private investors, which could spur growth in Tanzania’s industrial, manufacturing, and production sectors. It is also anticipated to generate new employment opportunities for Tanzanians.

Furthermore, the agreement allows Tanzanian investors to operate in Oman without facing double taxation, providing greater protection and reducing tax-related barriers.

This initiative is projected to enhance Tanzania’s appeal as a strategic investment destination in East and Southern Africa, leveraging its advantageous location, economic potential, and competitive investment climate to strengthen ties with Oman and the broader Gulf region.

Tanzania Tax Treaties

As of December 2024, Tanzania has established Double Taxation Agreements (DTAs) with various countries to facilitate cross-border trade and investment while preventing the double taxation of income.

Current DTAs are in place with Canada, Denmark, Finland, India, Italy, Norway, South Africa, Sweden, and Zambia. An East African DTA has also been signed but is pending ratification.

Oman, the other signatory of the recent agreement, has an extensive network of DTAs with numerous countries.

These agreements include those with Belarus, Brunei, Canada, China, Croatia, France, Hungary, India, Iran, Italy, Japan, Korea, Lebanon, Mauritius, Moldova, Morocco, Netherlands, Pakistan, Portugal, Qatar, Russia, Seychelles, Singapore, Slovakia, South Africa, Spain, Switzerland, Syria, Thailand, Tunisia, Turkey, United Kingdom, Uzbekistan, and Vietnam.