India and Oman on Tuesday signed an agreement to amend their taxation treaty — Double Taxation Avoidance Agreement (DTAA) — in an attempt to align it with “international standards on cross-border taxation, simplifying tax procedures, and promoting greater cooperation in tax matters”.

DTAA is signed between nations to avoid double taxation and prevent fiscal evasion as far as taxes on income are concerned.

The “protocol” to amend the tax treaty was signed during Commerce and Industry Minister Piyush Goyal’s two-day visit to Oman, which ended on Tuesday (January 28). A protocol is typically signed so that countries are able to update DTAA, while ensuring effectiveness of the treaty.

During his visit, Goyal and his counterpart Qais bin Mohammed Al Yousef agreed to expedite the discussions for an “early signing” of the Comprehensive Economic Partnership Agreement (CEPA).