News developments
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
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
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’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.
News developments
Oman’s Public Prosecution has clarified the employment rules. They clarified expatriate employees who leave an employer to work for another will be jailed for one month and fined 1,000 Rials. The penalties will be doubled for multiple violators. Those who work without a permit from the relevant authorities by an expatriate or work for another employer apart from their licensed employer will also be jailed for a month and fined 800 Rials. They will also be deported and refused entry to the Sultanate.
News developments
The Omani Court of Appeal has sentenced a public employee to 10 years in jail after convicting him of embezzling 1.2 million Omani riyals and of money laundering. The defendant was convicted of embezzlement and money laundering in two separate cases. In the first, he was given a five-year jail term and fined 1.2 million Riyals. In the second, the court sentenced the convicted employee to another five years in jail for money laundering and a fine of 50,000 Omani riyals. The court also ordered the dismissal of the convicted employee from his post and he has been banned from taking on public posts forever. The seizure of his funds has also been ordered.
News developments
Oman’s Commerce and Industry Minister has issued a Ministerial Decision amending the classification of SMEs in the Sultanate. The aim is to take account of the classification of these establishments in other GCC states. It means these entities will be classified according to their workforce and revenue. Under the new classification, a micro establishment will have one to ten employees and its annual revenues will be less than 150,000 Rials. A small establishment will have 11 to 50 employees and an annual revenue of between 150,000 and 1,250,000 Rials. A medium establishment will have 51-150 employees and an annual revenue of between 1,250,000 and five million Rials.
News developments
Oman’s Manpower Ministry has issued a clarification on reports of pay being cut by 50%. The Ministry was responding to reports in other media saying employers were cutting pay by 50% instead of 30%. The Ministry said the Supreme Anti-Coronavirus Committee has not approved a percentage cut to employee pay once an employee has used up all their paid annual leave. Once the paid annual leave has been used up employers can negotiate reductions in their pay for three months. Any reductions must be accompanied by a reduction in working time.
News developments
Oman’s Public Authority for Privatisation and Partnership has approved the Implementing Regulations to the Sultanate’s Public Private Partnership Law. Among other things, the Implementing Regulation specifies how these projects should be carried out. The Authority was established under Oman Sultani Decree No. 54/2019.
News developments
The Omani Police have announced customs clearing requirements will be relaxed. The aim is to help the commercial sector. Given the current circumstances in the country and the world, customs clearing requirements will be relaxed. Under the new requirements, imported goods can be cleared even when the importer is unable to provide the relevant documents and certificates from the source country.