Speech by Second Minister for Finance & Minister, Prime Minster's Office Mr. Lim Hng Kiang at the signing ceremony of the Avoidance of Double Taxation Agreement between Singapore and Oman, 6th October 2003, 4.30 pm06 Oct 2003
Your Excellency, Ahmed Bin Abdulnabi Macki, Minister of National Economy and Deputy Chairman for Financial Affairs and Energy Resources Council
Ladies and Gentlemen
It is my pleasure to welcome you to Singapore and to the signing of the comprehensive Avoidance of Double Taxation Agreement between Singapore and Oman.
2 Singapore and Oman have been close partners in the international community for the last two decades since we established diplomatic relations in 1985. Our bilateral relations have been enriched by the regular bilateral visits and the support we provided to each other in the international fora. The conclusion of an Agreement for the Avoidance of Double Taxation for Income Derived from International Air Transport in 1998 was a good testimony of the close co-operation between the 2 States. The signing of this comprehensive DTA today further deepens our excellent bilateral relations and brings about positive economic outcomes for both countries.
3 One good example of closer collaboration is in the area of trade. Singapore imports crude oil from Oman while Oman's growing market for finished goods offers potential for Singapore's export. Oman presents Singapore businessmen with opportunities to participate in Oman's growing economy. Oman can, on the other hand, use Singapore as a source for finished products, technology and expertise. Each country can leverage on the strengths and opportunities of the other for mutual benefit and advance our shared economic interests. Such cooperation will create more jobs for our citizens.
4 In the absence of a DTA, income derived from such productive cross-border economic activities may be subject to double taxation due to different tax laws applicable in both countries.
5 Indeed, the comprehensive DTA that we are signing today will help to break down such barriers for economic cooperation. With this agreement, the taxing rights of Singapore and Oman on all forms of income arising from cross-border activities between our 2 countries will be given greater certainty. It will also provide for the elimination of double taxation on income arising from such activities. As such, this DTA will relieve our businessmen from having to worry about tax issues as they seek out investment opportunities.
6 I am confident that this comprehensive DTA will encourage greater cross-flow of technology, talent and expertise which will benefit the people of both countries in the years to come. I therefore have the pleasure to join you today in signing this comprehensive Agreement.