Oman Archives - Page 26 of 32 - LexisNexis Middle East

Oman: Income Tax on Wealthy Under Consideration

06/11/202006/11/2020
by Benjamin Filaferro

Oman’s Government is considering introducing an income tax on the wealthy in the Sultanate. The measure is being considered as the Sultanate tries to address an increasing budget deficit. The Government are also considering reforming public service subsidy schemes, increasing power and water tariffs, strengthening tax compliance and administration, rationalising expenditure and boosting efficiency. They are also considering liberalising visa regimes for tourists and introducing labour reforms.

News developments

Oman: Ministerial Decision amending the regulation for running promotional campaigns based on the Commercial Registry Law

30/10/202030/10/2020
by Benjamin Filaferro

Oman’s Commerce, Industry and Investment Promotion Ministry has issued Oman Ministerial Decision No. 184/2020 amending the regulation for running promotional campaigns based on the Commercial Registry Law (Oman Law No. 3/1974). It has also been issued in line with the Trade Law promulgated by Oman Sultani Decree No. 55/1990 and the regulation organising promotional activities issued by Oman Decision No. 239/2013. Under the Decision, shops in commercial centres can hold collective promotional offers, once a year for three days , provided the decision is published in the Official Gazette and comes into force the day after it is published in the Official Gazette.

News developments

Oman: VAT Penalties Announced

25/10/202025/10/2020
by Benjamin Filaferro

Tax experts in Oman have announced the VAT penalties have been approved. The penalties will include fines and jail terms for violators. The fines will vary between 1,000 and 10,000 Rials. Violators will be jailed for between two months and a year. Violators could be fined and jailed. The penalties will be doubled for repeat offenders. However, the jail terms may not be increased by more than 50%. Offences which will result in penalties include taxable entities which deliberately fail to identify the ‘responsible person’. This person is the company’s designated point of reference on tax matters. Legal action may also be taken ‘the responsible person deliberately fails to notify the Oman Tax Authority and obtain its consent to appoint another responsible person during the period of his absence for a period of more than 90 days’. Unauthorised fudging of data, failure to tax returns, failure to maintain tax invoices and documents in the prescribed way, failure to respond to a summons and submitting inaccurate data to secure a refund will also result in penalties being imposed. In addition, late tax payments will lead to 1% of the tax owed for every month or part of a month it remains pending being imposed.

News developments

Oman: EU Removes Oman From Non-cooperating Jurisdictions for Tax Purposes List

17/10/202017/10/2020
by Benjamin Filaferro

The EU has announced it has decided to remove Oman from their List of non-cooperative jurisdictions for tax purposes. Their removal follows the reforms by the Sultanate to improve their tax policy framework.

Weekly Spotlight

Oman:Decree No. 121/2020 on the VAT law approved by the Oman’s Sultan

17/10/202017/10/2020
by Benjamin Filaferro

Oman’s Sultan has approved Oman Sultani Decree No. 121/2020 issuing the Sultanate’s VAT Law. Under the Law, the tax will be imposed on most goods and services with specific exceptions detailed in the Law and subsequent regulations. It will be applied at every stage of the supply chain and on the import of goods into the Sultanate with specific exceptions specified in the Law and subsequent regulations. It will be levied at 5% and the Sultani Decree has been issued in line with a VAT Agreement signed by the GCC countries in November 2016.
Under Article 2 of Oman Sultani Decree No. 121/2020 the Chairman of the Tax Authority will issue the Implementing Regulations to the Law within six months of the Law being enforced. They will also issue the necessary decision to implement it. Anything which contravenes or contradicts it will be repealed.
The relevant Sultani Decree will be published in the Official Gazette and it will come into force 180 days after it is published in the Gazette.

News developments

Oman: EU Removes Oman From Non-cooperating Jurisdictions for Tax Purposes List

09/10/202009/10/2020
by Benjamin Filaferro

News developments

Oman:Non-Omani Lawyers Cannot Make Court Pleadings From 31 December

02/10/202002/10/2020
by Benjamin Filaferro

Oman’s Justice and Legal Affairs Ministry has announced non-Omani lawyers will not be able to make court pleadings from 31 December. Omani advocacy offices, civil law firms and the relevant authorities will be responsible for complying. It will apply to non-Omani lawyers of all seniority.

News developments

Oman: Dual Tax Returns System Abolished

25/09/202025/09/2020
by Benjamin Filaferro

Following the issuing of Oman Sultani Decree No. 118/2020 amending Oman Sultani Decree No. 28/2009, the Sultanate’s Tax Authority has announced the dual tax return system has been abolished. It means taxpayers only have to file one tax return within four months of the end of the relevant tax year from the 1 January 2020. Previously, taxpayers had to file a provisional return of income within three months and an annual return of income within six months from the end of the accounting year. Despite the change being welcomed, tax professionals have advised taxpayers to be aware audits of financial statements will need to be carried out well in advance of the tax return filing deadline. Oman Sultani Decree No. 118/2020 was published in the Official Gazette on 20 September 2020. It also includes provisions to facilitate the Automatic Exchange of Information (AEOI) between tax jurisdictions, the introduction of tax residency provisions and changes in the proceedings for appeals.

News developments

Oman: Omanisation in Sub-contracted Work Announced

14/09/202014/09/2020
by Benjamin Filaferro

According to local newspaper reports, the Undersecretary for Oman’s Labour Ministry has announced the Omanisation rules for sub-contractors. Under the rules, Omanis will be prioritised. The sub-contracting of expatriates should stop to enable this.

News developments

Oman: Joint Panel Report on Draft VAT Law Discussed

04/09/202004/09/2020
by Benjamin Filaferro

Oman’s Shoura Council has discussed a Joint Panel report on the draft VAT Law. Their discussion followed the referral of the draft law to it by the State Council and associated discrepancies. The Economic and Financial Committee of the Shoura Council had previously proposed VAT be applied only if economic growth of at least 3% was achieved. They had also proposed social security families and those with limited or low incomes be potentially exempt. The Shoura Council sent the draft law back to the State Council to finalise. The VAT Law is expected to come into force in the first half of next year and follows the introduction of excise tax in the Sultanate.