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: 11
Membership: 15
Agenda Duration: 7m
AI Summaries: 11/11 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu agenda included the first reading of Draft Act 692, initiated by the Government of the Republic, concerning the ratification of the agreement and its accompanying protocol between the Republic of Estonia and the Sultanate of Oman on the avoidance of double taxation with respect to taxes on income and the prevention of fiscal evasion. Minister of Finance Jürgen Ligi introduced the draft act, explaining that the purpose of the agreements is to ensure a stable tax environment, prevent international double taxation, and curb tax evasion. The agreement, which was signed in Muscat on October 27, 2024, is based on the OECD Model Convention and is Estonia's 64th valid tax treaty. The Minister highlighted the main provisions, including limited taxing rights on dividends (up to 10%, 0% in certain cases), interest (up to 5%, 0% for government institutions), and royalties (up to 8%), and emphasized the obligation for comprehensive information exchange between tax authorities.
Speaking on behalf of the Finance Committee, Diana Ingerainen proposed concluding the first reading. During the debate, Peeter Ernits posed questions to both the Minister and the Committee representative, inquiring why Oman was chosen as a partner, given the small volume of trade and the significant imbalance between the countries. Minister Ligi explained that concluding the agreements depends on the interest of the counterparty, and while Estonia's trade balance is traditionally in deficit, the services balance is in surplus. The Riigikogu decided to conclude the first reading of the draft act, and the deadline for submitting amendments was set for October 20 at 5:15 p.m.
Decisions Made 2
The Finance Committee unanimously proposed concluding the first reading of Bill 692 SE.
The Riigikogu concluded the first reading of draft legislation 692 SE.
Most Active Speaker
Peeter Ernits was an active participant in questioning, addressing both the Minister of Finance and the representative of the Finance Committee with questions concerning the strategic rationale behind selecting Oman and the imbalance in the international trade balance.
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 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 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 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 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 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.
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.
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.