First reading of the Draft Act (692 SE) on the Ratification of the Convention between the Republic of Estonia and the Sultanate of Oman for the Avoidance of Double Taxation with respect to Taxes on Income and the Prevention of Fiscal Evasion, and the Protocol thereto
Session: The 15th Riigikogu, 6th Session, Plenary Sitting
Date: 2025-10-06 18:27
Participating Politicians:
Total Speeches: 19
Membership: 15
Agenda Duration: 7m
AI Summaries: 19/19 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu debated, on its first reading, Draft Act 692 initiated by the Government of the Republic on the Ratification of the Agreement between the Republic of Estonia and the Sultanate of Oman for the Avoidance of Double Taxation with Respect to Taxes on Income and the Prevention of Fiscal Evasion, and the Protocol thereto. Minister of Finance Jürgen Ligi introduced the draft act, explaining that the purpose of the agreement is to ensure the stability of the tax environment for foreign enterprises investing in Estonia, as well as for Estonian enterprises operating in foreign markets. The agreement is based on the OECD Model Convention and is Estonia’s 64th or 65th valid tax treaty. Ligi highlighted the most important provisions, including the limited taxing right of the source state regarding dividend income (an upper limit of 10%, an exemption in the case of a 20% holding), interest income (an upper limit of 5%), and royalties (an upper limit of 8%). The comprehensive obligation for the exchange of information between tax authorities was also emphasized.
Riigikogu Member Peeter Ernits posed questions to the Minister and later to the committee representative regarding the choice of Oman and the large imbalance in the Estonian-Omani trade balance (exports of 1.42 million, imports of 12 million). Minister Ligi responded that the conclusion of agreements depends on the interest of the counterparty, and that the trade balance of a small state is traditionally in deficit, while the services balance is in surplus. Diana Ingerainen, Member of the Finance Committee, presented the committee’s discussion, confirming that the committee proposed concluding the first reading, but did not discuss the question raised by Ernits concerning the criteria for selecting partner countries.
Decisions Made 3
The Finance Committee made a consensus proposal to add the draft bill to the plenary session's agenda on October 6.
The Finance Committee appointed Diana Ingerainen as the representative of the Lead Committee.
At the suggestion of the responsible committee, the first reading of Draft Bill 692 was concluded. The deadline for submitting amendments was set for October 20th at 5:15 p.m.
Most Active Speaker
Peeter Ernits was an active questioner, repeatedly posing questions both to the Minister of Finance and the representative of the Finance Committee regarding the choice of Oman and the disruption in the Estonia-Oman trade balance. (Other)
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announced that the second item on the agenda for today's sitting of the Riigikogu is the first reading of Draft Act 692 concerning the ratification of the agreement between Estonia and Oman for the avoidance of double taxation with respect to taxes on income, and invited Minister of Finance Jürgen Ligi to introduce the draft.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi will submit the Double Taxation Avoidance Agreement between Estonia and Oman to the Riigikogu for ratification. The agreement, which is based on the OECD Model Convention, is primarily intended to ensure a stable tax environment, prevent international double taxation, and curb tax evasion. Among its provisions, it sets limits on the taxation of dividends (up to 10%), interest (up to 5%), and royalties (up to 8%), and mandates a comprehensive exchange of information between tax authorities.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi submitted to the Riigikogu for ratification the agreement between Estonia and Oman for the avoidance of double taxation, the objective of which is to ensure a stable tax environment, prevent international double taxation, and curb tax evasion, while stipulating limited taxation rights for the source country regarding dividends (generally up to 10%), interest (up to 5%), and royalties (up to 8%), and the obligation for comprehensive information exchange between tax authorities.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the esteemed minister and then gave the floor to Peeter Ernits, who wished to ask the minister at least one question.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits deems the draft bill important but raises questions regarding the causes of Estonia's significant trade imbalance, specifically citing the role of peat, and asks why Oman was selected as the cooperation partner, particularly after the recent partnership with Botswana.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits emphasized the significance of the draft legislation under consideration, but expressed concern regarding Estonia's substantial trade deficit (export versus import, particularly in the context of peat). He sought clarification on what causes such an imbalance and why Oman, specifically, was selected as the new partner country.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi noted that Estonia is constantly concluding new agreements, which is administratively burdensome. However, the trade balance traditionally remains in deficit because trade volume is small and dependent on external factors. Yet, the surplus in the services balance demonstrates the advantage of a smart small state, where services are more profitable than goods.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi notes that Estonia has concluded numerous administratively burdensome agreements, such as the one with Oman, and explains that the small volumes of trade make balancing the overall balance difficult. However, he stresses that Estonia’s traditional trade balance deficit coupled with a services balance surplus is the hallmark of a smart small state, since services are more profitable than goods.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the esteemed minister and concluded the round of questions directed at him, subsequently inviting Diana Ingerainen, a member of the Finance Committee, to the Riigikogu podium to present the discussion that had taken place in the committee.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the Minister, thereby concluding the round of questions, and invited Diana Ingerainen, a member of the Finance Committee, to the Riigikogu rostrum to present the discussion that had taken place in the committee.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen, speaking on behalf of the Finance Committee, provided an overview of the draft bill's discussion held on September 16, highlighting that the committee reached three consensus decisions: to include the draft bill in today's plenary agenda, to appoint a representative, and to propose concluding the first reading.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen provides an overview of the debate on the draft legislation on behalf of the Finance Committee, confirming that the committee reached a consensus on three decisions: to include the bill on today's agenda, to appoint Diana Ingerainen as the rapporteur, and to propose concluding the first reading.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the audience and immediately handed the floor over to Peeter Ernits to begin the questioning.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits is challenging the criteria used for selecting the countries, asking why small states like Botswana and Oman have ended up on the list (which is significant for Bloomberg), while many large nations are missing. He is demanding an explanation regarding the logic of the selection and the future plans.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits continues the discussion, challenging the criteria used for selecting countries (such as Oman and Botswana) as treaty partners. He asks why these specific nations are prioritized over many others and demands that the Minister of Finance provide a clear explanation for the rationale behind these choices and outline the future strategy, given that the current selection appears both insignificant and arbitrary.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen provided a brief response, confirming that the topic in question had not been discussed by the commission.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen responded briefly to the question posed, confirming that the subject matter had not been discussed by the commission.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar concluded the questioning of the rapporteur and the debate due to the lack of requests to speak, and announced that, following the proposal of the lead committee, the first reading of Bill 692 SE has been concluded, setting the deadline for submitting amendments as October 20 of the current year at 17:15.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar, having thanked the rapporteur and closed the debate due to the absence of requests to speak, announced the conclusion of the first reading of Bill 692 and set the deadline for submitting amendments as 17:15 on October 20th of the current year.