Weekly Spotlight: Executive Regulations to Omani Income Tax Law Amended

Oman Official Gazette, issue 1280 has included Executive Regulations clarifying provisions in the Income Tax Law. The new Regulations are found in Oman Ministerial Decision No. 14/2019 and the amendments include changes on withholding tax, deductibility of expenses, tax exemptions, administrative procedures and the tax ability of enterprises. They also detail new forms for providing or updating taxpayer information and procedures for obtaining a tax card, electronic filing and onsite inspection. The changes generally apply from 11 February 2019, although some have retroactive application to tax years beginning on or after 1 January 2018. Taxpayers should check these amendments for implications they may have on their tax returns.

Oman’s tax authorities are also expected to begin issuing Tax Cards for all corporate entities, including LLCs, SAOCs, SAOGs, branches of foreign companies and permanent establishments operating in the Sultanate shortly. The Cards are mandatory for companies following amendments to the Income Tax Law which were issued last year. The cards will be either chip-based or take the form of an electronic document with a Unique Identification Number. Card applications will have to be submitted on the Tax Department portal once the forms are available online.