RIYADH: Russia and Oman have signed an agreement to avoid double taxation, Russia’s finance ministry said on Thursday, describing the move as an important step in deepening economic ties between the two countries. “In 2022, the volume of mutual trade between our countries has already shown growth of 46 percent,” Deputy Finance Minister Alexei Sazanov was quoted as saying. “It is necessary to further increase trade turnover and strengthen economic cooperation.” Russia has proposed suspending its double taxation agreements with what it calls “unfriendly countries” — those that have imposed sanctions on Moscow over its invasion of Ukraine. It currently has double taxation treaties — designed to prevent the same income being taxed in two states — with 84 countries, including the US, the UK, Germany, France, Japan and others that have imposed sanctions. The agreement with Oman sets out a general 15 percent withholding tax on dividend income and a reduced rate of 10 percent for companies holding at least a 20 percent stake in the dividend payer, the finance ministry said. The tax rate on interest income and royalties is set at 10 percent, the ministry added. State-owned entities and other forms of public investment would be exempt from the withholding tax on dividend and interest income. The agreement should be ratified this year and enter into force from Jan. 1, 2024.