Oman’s Shoura Council is considering a new social media law. The head of the Council’s Media and Culture Committee said the law will not limit freedom of speech. They added the aim is to protect individuals, institutions or the country from rumours about them on social media. As part of this, where rumours are posted, the affected entity will be able to lodge complaints directly against them.
Oman Official Gazette, issue 1281 has included Oman Sultani Decree No. 18/2019 and at the same time some of the company law changes have become clearer. According to legal experts, Oman Sultani Decree No. 18/2019 has amended the company ownership rules for small firms. It also replaces individual institutions with sole proprietorships who will be regulated differently. Previously companies in the Sultanate could only be established with two proprietors.
Other changes include facilitating the process for companies to turn into SAOGs without the need to have a capital of 2,000,000 Riyals. In addition, these companies will now be regulated by the Capital Market Authority. It will also be easier for companies to merge and there are measures to help struggling companies, so they don’t have to declare bankruptcy. There are various guarantees including a public mandate for insurance to ensure bankrupt companies are insured. Voluntary liquidation must also be completed within three years now and judges can oversee liquidations.
Elsewhere the Government is considering a new Foreign Investment Law. If it is approved, it will allow foreign companies or individuals to increase their ownership in local companies to up to 100%. Currently foreign companies must have a local partner to do business in the Sultanate. The local partner must own 33% of the company. Additional restrictions on foreign entities having property assets or minimum capital requirements could also be introduced. Disputes will also be able to be settled by international arbitration.
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.
Preparations for VAT in Oman are continuing. Comments made by a representative of the Finance Ministry in a seminar organised by the Oman Chambers of Commerce and Industry indicate VAT implementation could be introduced as early as 1 September 2019. Industry body meetings, including the financial sector and the telecoms industry, are now starting, with a view to the Government devising practical guidelines for dealing with VAT compliance requirements.
This week the spotlight is on legal and regulatory developments in Oman, where the Sultanate’s Manpower Ministry has announced it has launched an updated version of its automatic updates licensing service on Omanisation in firms. The new system provides Omanisation rate indicators electronically and has a colour coding system. Green means the target has been achieved while yellow means the firm is 50% of the way towards meeting the target. Red means the target is not being met at all. The aim is to improve Omanisation rates in the Sultanate. The rates will be displayed when firms submit work permit applications and will affect the speed of work permits being issued in the case of those firms categorised as green or yellow. If a firm is categorised as red it will be shut down.
Elsewhere, according to local newspaper reports, the Manpower Ministry has announced employees in three sectors will have to agree to alcohol and drug tests. The oil and gas, port and airport and electricity and water sectors are affected. The aim is to increase workplace safety in these sectors and amends occupational health and safety provisions.
Under the amendments, employers must proactively ensure workplace facilities are alcohol and drug free. They may also carry out unannounced searches on company property and managers will be able to decide when a search or screening process may be carried out. In a separate development, the Oman Society for Petroleum Services has announced they are preparing to introduce guidelines to require their members to put policies and procedures in place to enforce this new regulation.
Oman’s Manpower Ministry has extended its Decisions not to issue new visas for workers in several private sector professions for another six months. Three new Decisions were issued on 13 November 2018. The first profession-by-profession bans came in to force in late 2013. Under the new Decisions, visas for construction workers, cleaners, sales and marketing professionals are affected. The Decision restricting new visas for sales and marketing professionals will come into effect on 30 November, for cleaning and construction workers from 2 December 2018 and for carpenters, metallurgists, blacksmiths and brick kiln workers on 2 January 2019. Firms who are registered as excellent or international grade, consultancies and those implementing Government projects will not be affected.
This week the spotlight is on legal and regulatory developments in Oman, where the Sultan has approved five Sultani Decrees, including a Decree amending the country’s Law on the Protection of Competition and Prevention of Monopoly.
Oman Sultani Decree No. 22/2018 amends Article 1 of Oman Sultani Decree No. 67/2014 replaces the word ‘Authority’ wherever it occurs in the Law with ‘Centre’ and replaces the definition of the ‘Authority’ wherever it occurs in the law with ‘The Centre: Centre of Protection of Competition and Prevention of Monopoly’. Anything which contradicts or contravenes the Decree is cancelled. It will be published in the Official Gazette and come into force the day after it is published.
The Sultan also approved a Sultani Decree amending Oman Sultani Decree No. 35/2012 which promulgates the System of the Public Authority for Investment Promotion and Exports Development. Under Oman Sultani Decree No. 23/2018, anything which contradicts or contravenes the Decree is cancelled. It will be published in the Official Gazette and come into force the day after it is published.
In addition, the Sultan approved Oman Sultani Decree No. 26/2018 establishing the Oman Commercial Arbitration Centre. It will be affiliated to the Oman Chamber of Commerce and Industry but will have its own legal identity and financial and administrative autonomy. The Chairman of the Board of Directors of the Oman Chamber of Commerce and Industry will issue the operational systems and functions of the Commercial Arbitration Centre. Anything which contradicts it is cancelled. It will be published in the Official Gazette and come into force on the day it is published.
2nd Edition in Oman! – 26 November 2018 After the success of the first Oman Business Law Forum in 2017, gathering over 100 people from the Omani legal and business community, the second edition conference will cover all the latest legal developments to be aware of in Oman. Thanks to our expertise in organising major (more…)
Oman’s Capital Market Authority has announced a new policy is currently under review which would mandate health insurance coverage is provided to all private sector employees and visitors in Oman. The Authority is working with the Health Ministry and the Royal Oman Police on mechanisms for the issuing of health insurance to visitors at border posts. When implemented, the new law will have a significant impact on the immigration process in Oman as proof of insurance would likely become a requirement to obtain legal status in the country. It has not been announced when the new requirement will come into effect. The Authority’s announcement is in line with the amendments to the law made by the Health Ministry in the last quarter of 2017.
Oman’s Shoura Council is set to discuss a number of draft laws including imposing selective tax which has been referred to it by the Council of Ministers. The Council is also set to discuss a draft law to amend Article 4 of the Foreigners Residency Law. In addition they will discuss a proposal to amend the Social Housing Law.
