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Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.



On signing the Agreement between the Federal Republic of Germany and the Sultanate of Oman for the avoidance of double taxation with respect to taxes on income and on capital, the Federal Republic of Germany and the Sultanate of Oman, have in addition agreed on the following provisions of the Protocol which shall form an integral part of the said Agreement:

(1) With reference to Article 2:

The term "tax" shall not include any amount which is payable in respect of any default or omission in relation to the taxes to which this Agreement applies or which represents a penalty imposed relating to those taxes.

(2) With reference to Article 4:

The State General Reserve Fund of the Sultanate of Oman, which is beneficially owned and controlled by the Sultanate of Oman, will be a resident of the Sultanate of Oman for the purposes of the Agreement.

(3) With reference to Article 7:

  • (a) Where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, the profits of that permanent establishment shall be determined on the basis of and to the extent of the actual activity carried on by that permanent establishment. Likewise, in the case of contracts for works or services executed, the profits of the permanent establishment shall be determined on the basis of that part of the contract, which is actually carried out by that permanent establishment.
  • (b) Profits derived by the head office from the supply of goods to the permanent establishment or from carrying out the part of the contract in the Contracting State in which the head office of the enterprise is situated shall be taxable only in that State. Such profits shall be determined on the basis of arm's length principle.
  • (c) In respect of paragraph 3 of Article 7, no deduction shall be allowed in respect of amounts paid or charged (otherwise than towards reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of:
    • (i) royalties, fees or other similar payments in return for the use of patents or other rights;
    • (ii) commission, for specific services performed or for management; and
    • (iii) interest on moneys lent to the permanent establishment, except in the case of a banking enterprise.

(4) With reference to Articles 7 and 14:

Payments received as a consideration for technical services, including studies or surveys of a scientific, geological or technical nature, or for engineering contracts including blue prints related thereto, or for consultancy or supervisory services shall be deemed to be payments to which the provisions of Article 7 or Article 14 of the Agreement apply.

(5) With reference to Articles 10 and 11:

Notwithstanding the provisions of Articles 10 and 11 of this Agreement, dividends and interest may be taxed in the Contracting States in which they arise, and according to the laws of that State, if they are:

  • (a) derived from rights or debt-claims carrying a right to participate in profits, including income derived by a silent partner ("stiller Gesellschafter") from his participation as such, or from a loan with an interest rate linked to borrower's profit ("partiarisches Darlehen") or from profit-sharing bonds ("Gewinnobligationen") within the meaning of the tax law of the Federal Republic of Germany; and
  • (b) deductible in the determination of profits of the debtor of such income.

(6) With reference to Article 18:

Notwithstanding the provisions of paragraph 1 of Article 18, recurrent or non-recurrent payments made by the Federal Republic of Germany, a "Land", a political subdivision or a local authority to a person resident in the Sultanate of Oman as compensation for political persecution or for a damage sustained as a result of war (including restitution payments) or of military or civil alternative service or of a crime, vaccination or a similar event shall be taxable only in the Federal Republic of Germany.

(7) With reference to Article 19:

The provisions of paragraphs 1 and 2 of Article 19 shall likewise apply in respect of remuneration paid by or for the Goethe Institute or the German Academic Exchange Service ("Deutscher Akademischer Austauschdienst") of the Federal Republic of Germany. Corresponding treatment of the remuneration of other comparable institutions of the Contracting States may be arranged by the competent authorities by mutual agreement. If such remuneration is not taxed in the State where the institution was founded, the provisions of Article 15 shall apply.

(8) With reference to Article 26:

If in accordance with domestic law personal data are exchanged under this Agreement, the following additional provisions shall apply subject to the legal provisions in effect for each Contracting State:

  • (a) The receiving agency may use such data only for the stated purpose and shall be subject to the conditions prescribed by the supplying agency.
  • (b) The receiving agency shall on request inform the supplying agency about the use of the supplied data and the results achieved thereby.
  • (c) Personal data may be supplied only to the responsible agencies. Any subsequent supply to other agencies may be effected only with the prior approval of the supplying agency.
  • (d) The supplying agency shall be obliged to ensure that the data to be supplied are accurate and that they are necessary for and proportionate to the purpose for which they are supplied. Any bans on data supply prescribed under applicable domestic law shall be observed. If it emerges that inaccurate data or data which should not have been supplied have been supplied, the receiving agency shall be informed of this without delay. That agency shall be obliged to correct or erase such data.
  • (e) Upon application the person concerned shall be informed of the supplied data relating to him and of the use to which such data are to be put. There shall be no obligation to furnish this information if on balance it turns out that the public interest in withholding it outweighs the interest of the person concerned in receiving it. In all other respects, the right of the person concerned to be informed of the existing data relating to him shall be governed by the domestic law of the Contracting State in whose sovereign territory the application for the information is made.
  • (f) The receiving agency shall bear liability in accordance with its domestic laws in relation to any person suffering unlawful damage as a result of supply under the exchange of data pursuant to this Agreement.
  • (g) If the domestic law of the supplying agency provided for special provisions for the erasion of the personal data supplied, that agency shall inform the receiving agency accordingly. Irrespective of such law, supplied personal data shall be erased once they are no longer required for the purpose for which they were supplied.
  • (h) The supplying and the receiving agencies shall be obliged to keep official records of the supply and receipt of personal data.
  • (i) The supplying and the receiving agencies shall be obliged to take effective measures to protect the personal data supplied against unauthorised access, unauthorised alteration and unauthorised disclosure.