date: 20230905

Organized By: Zawya

External URL: https://www.zawya.com/en/economy/gcc/oman-russia-sign-pact-to-avoid-double-taxation-p2ndgzs4

Muscat September 05 2023:

Oman and the Russian Federation inked an agreement on Thursday on the avoidance of double taxation and the prevention of tax evasion for income taxes.

The agreement was inked by Saud Nasser al Shukaili, Chairman of Oman Tax Authority on behalf of the Oman government and Alexei Sazanov, Deputy Minister of Finance on behalf of the Russian government. The agreement aims to legally protect investors from imposing double taxes and regulate the imposition of tax between the two countries, which will contribute to enhancing investments and trade exchange between them.

The agreement should be ratified this year and enter into force from January 1, 2024.

Read More.

date: 20230815

Organized By: Zawya

External URL: https://www.zawya.com/en/legal/regulations/oman-no-vat-customs-or-registration-fee-on-electric-vehicles-ogyz3n9c

Muscat August 15 2023:

Oman will exempt electric vehicles and parts from value-added tax (VAT), customs tax and registration fees, starting July 1, to encourage more adoption.

According to the Tax Authority (TA), zero VAT on EVs will be applicable under specific conditions, including the car must be equipped with a fully electric motor or hydrogen-powered engine, and the vehicle must be registered in the Sultanate as either an electric car or zero-emission vehicle (hydrogen) in compliance with prescribed procedures.

Additionally, the EV must meet the specifications and standards approved in Oman. Purchase of the EV and its spare parts must be from a person or entity holding a registered VAT account in the country. Oman also plans to increase the number of electric vehicles by converting public transport, and installing more public chargers according to the ministry of transport’s carbon reduction program.

Read More.

date: 20230710

Organized By: Muscat Daily

External URL: https://www.muscatdaily.com/2023/06/08/oman-russia-sign-pact-to-avoid-double-taxation/

Muscat July 10, 2023:

The Sultanate of Oman and Russia Federation have signed an agreement to avoid double taxation and the prevention of tax evasion for income taxes in Muscat. On the Russian side, the document was signed by the Deputy Minister of Finance Alexey Sazanov, while in Oman the Chairman of the Tax Authority Saud Bin Nasser Al Shukaili signed on behalf of the government.

The agreement is aimed at the legal protection of investors from double taxation and the regulation of taxation between the two countries. This move is an important step and will contribute to the expansion of investment, trade exchange and boost bilateral economic cooperation of both countries.

Meanwhile, Oman has signed more than 38 taxation agreements with friendly countries to expand the scope of investments and trade exchange.

Read More.

date: 20230626

Organized By: Times Of Oman

External URL: https://timesofoman.com/article/132648-violation-of-refraining-from-issuing-the-tax-invoice

Muscat June 26 2023:

Oman Tax Authority (OTA) has called on all VAT registrants to abide by the provisions of the VAT Law, submit tax returns on the specified dates and disclose the tax.

It should be noted that in the event of non-compliance for VAT registration for those whose annual revenues or supplies exceed OMR 38, 500, or if the tax return does not include the real data of VAT, it is considered a crime under the text of Article (101) of the Value Added Tax Law No.121/2020 and is punishable by imprisonment for a period of up to three years and a penalty of up to OMR 20, 000.

Moreover, failure to submit a tax return for any tax period, failure to issue a tax invoice or failure to keep tax invoices are also considered as a crime under Article (100) of the Value Added Tax Law and is punishable by imprisonment that may reach one year and a penalty of OMR 10,000.

It is worth mentioning that the Tax Authority has started widespread awareness campaigns targeting all taxpayers in various governorates of the Sultanate of Oman to comply to the Tax Laws in order to preserve their rights and avoid getting penalized.

Read More.

date: 20230610

Organized By: Oman Tax Authority

External URL: https://tms.taxoman.gov.om/portal/web/taxportal/-/oman-tax-authority-grants-tax-exemptions-for-electric-vehicles-and-implements-new-regulations-for-charging

Muscat June 10 2023:

The Oman Tax Authority made a significant announcement regarding Electric Vehicles (EVs) and EV parts in the sultanate. As per the new directives, electric vehicles and hydrogen powered vehicles will be exempted from VAT and customs tax. To qualify the vehicle must be registered in Oman as an electric car or a zero-emission vehicle. The vehicle must also meet the approved specifications and standards in Oman.

This move aims to encourage the adoption of eco-friendly vehicles and support sustainable transportation in the country.

Read More.

date: 20230305

Organized By: Oman Tax Authority

External URL: https://www.muscatdaily.com/2023/02/28/tax-authority-launches-new-app-to-combat-counterfeit-goods-in-oman/

Muscat March 5, 2023:

The Oman Tax Authority (OTA) has launched an app called ‘Ta’akad’ to protect consumers from counterfeit goods and verify the validity of tax stamps on products.The app is available on both Android and IOS devices and allows consumers to report any commodity which violates the law.

An official at Tax Authority said, ‘The app aims to prevent the spread of counterfeit goods in the local markets and ensures the validity of the tax stamp on the products and protects the consumer.’ He added, ‘The consumer can now report any commodity that violates the law through the application.’

The Tax Authority is also working with the Royal Oman Police and the Consumer Protection Authority to prevent the entry of cigarettes and tobacco products without the distinctive tax stamp into the country.

View More.

date: 20230205

Organized By: Oman Tax Authority

External URL: https://bit.ly/3Z3ffur

Muscat February 5, 2023:

Oman Tax Authority (OTA) has commenced the phase of mandatory local obligation with respective to its decision of Tax Stamp implementation in the Sultanate of Oman. Inspectors of the Tax Authority have conducted inspections in many local markets since the first of February to ensure that the Digital Tax Stamp (DTS) is being put on the products of excise goods.

The system of Tax Stamps aims to protect the consumer from counterfeit excise goods. The tax stamps are scanned at the entry points to the Sultanate of Oman to ensure that the products are original and intact, and to reduce the incidence of smuggling these products to the Sultanate. This move thereby reduces the possibility of evasion from Excise Tax while ensuring timely and effective tax collection and meeting compliance standards under the WHO (FCTC).

Read more.

date: 20221108

Organized By: The National

External URL: https://www.thenationalnews.com/gulf-news/2022/11/08/mixed-reaction-as-oman-passes-draft-law-on-income-tax-for-high-earners/

Muscat November 8, 2022:

After two years of contemplation, the Gulf state of Oman is on the cusp of introducing income tax in the region. A draft law to levy income tax on high earners was passed on November 6, 2022 by the country’s Shura Council. Subject to approval from the Council of Ministers and a final endorsement from Sultan Haitham, the tax will then become law.

“Income tax is on track. We expect personal income tax to go live by late 2023 or in 2024 provided that it receives all approvals including the royal decree.” a source revealed on the condition of anonymity.

Oman is more likely to bring personal income tax in the range of 5-9%, which is not yet confirmed. The buzz on income tax draft law has evoked mixed reactions from citizens in different salary brackets. Most feel a percentage cut of 3-5% will be okay and anything above that can hit their income. Middle-income earners were also concerned that if the new law is approved what would it mean for them in the long run. However experts opine that such a levy would be a good idea overall for the country’s finances.

Read more.

date: 20221104

Organized By: Ministry of Justice and Legal Affairs

External URL: https://mjla.gov.om/eng/legislation/decisions/details.aspx?Id=1869&type=D

Muscat November 4, 2022:

In October 2022, the Oman Tax Authority (OTA) issued Ministerial Decision No. 456/2022 (MD 456/ 2022) amending certain provisions of the Executive Regulations of the Excise Tax Law issued under MD 53/ 2021. The amendments have gone into effect from 17 October 2022.

The amendments are currently available only in Arabic and can be downloaded from here.

date: 20221025

Organized By: Oman Tax Authority

External URL: http://www.allaboutvat.com/wp-content/uploads/Tax-Stamp_brief_final-1.pdf

Muscat October 25, 2022:

Starting from September 19, 2022, importers and local manufacturers will be able to request the digital tax stamps which will be sent to manufactures to put on molasses and other tobacco products.

Click here to view the document elaborating on the essentials of the Tax Stamp Scheme in Oman (Note: File in Arabic).

date: 20221004

Organized By: Oman Tax Authority

External URL: https://bit.ly/3yd10rx

Muscat October 4, 2022:

Oman Tax Authority has made an announcement urging taxpayers to update their communication data of their institutions when they access to the Tax Authority’s electronic portal.

In a statement the Tax Authority said “Taxpayers should update the communication data of their institutions when they access to the Tax Authority’s portal www.taxoman.gov.om. We appreciate your cooperation to update this data that will allow you to access the electronic services provided by the Tax Authority in the future.”

In regards to this, the Authority has also issued a step by step guide outlining the process for updating contact details.

Click here to view the guide.

date: 20221002

Organized By: Oman Tax Authority

External URL: http://www.allaboutvat.com/wp-content/uploads/Tax-Stamp_brief_final.pdf

Muscat October 2, 2022:

Starting from September 19,2022, importers and local manufacturers in Oman can request the digital tax stamps which will be sent to manufactures to put on molasses and other tobacco products.

Ahead of the rollout of the second phase of its Digital Tax Stamp initiative on October 14, 2022, Oman Tax Authority has urged importers of tobacco products and spirits to obtain excise tax stamps to be supplied to their overseas principals for affixing on their goods before they are shipped into the country.

The scheme, which came into effect on June 30, 2022, aims to strengthen regulation of trade and sale of excisable products and optimize the collection of tax levied on such goods. The digital tags will also help clamp down any illegal imports of excise goods in the country.

View more details in the file.

date: 20220909

Organized By: Times Of Oman

External URL: https://timesofoman.com/article/120719-tax-authority-organises-workshops-on-vat-and-corporate-income-tax

Musact September 9, 2022:

The tax authority, in coordination with the General Authority for Economic and Free Zones, organized two workshops on value-added tax and corporate income tax in the Salalah Free Zone, in the presence of several officials and employees of the authority, the industrial city of Raysut (Mada’in), the free zones of Salalah and Mazyona, the office of the governor of Dhofar and investors in the industrial zones.

The first workshop presented by Saeed bin Ahmed Al-Shanfari, Director-General of the Second General Directorate of Taxation, addressed several themes. The most important one was on Value Added Tax Act imposed on all supplies of goods and services in Oman unless exempted or submitted at zero percent. Other topics discussed were VAT mechanism, types of supplies, tax rates and tax-exempt supplies.

Participants were also introduced to VAT returns filing mechanism, annual revenue components, tax collections and services provided by the Tax Authority through its website.

The workshops were attended by a large number of employees and investors in the industrial zones, who widely interacted by asking questions to the tax specialists who in turn provided all the necessary clarifications about the tax.

Read more.

date: 20220809

Organized By: National Bureau for Revenue

External URL: https://www.nbr.gov.bh/publications/view/DS_manual_importers_Local_Manufacturers

Manama August 9, 2022:

The National Bureau for Revenue (NBR) has issued a detailed manual on Tax Stamp for domestic importers and local manufacturers. The Digital Stamp Scheme is a supervisory system to track excise goods from the manufacturing stage to the point of consumption to limit smuggling instances within the Kingdom of Bahrain, thereby reducing the possibility of Excise evasion.

The manual provides clarity on the digital tax stamp on excise products in the country. It contains the following:

• An overview of the Kingdom of Bahrain’s excise rules and procedures in regard to the Digital Stamps Scheme.
• The necessary guidance needed to navigate the Digital Stamps Scheme online portal and the process of ordering and tracking digital stamps from the perspective of an importer of excise products.

NOTE: The manual intends to provide general information only and does not represent exhaustive or legally binding guidelines. For more information as case, you may directly contact National Bureau for Revenue (NBR) via email ds@nbr.gov.bh

View more.

date: 20220729

Organized By: Oman Tax Authority

External URL: https://bit.ly/3OI8DM2

Muscat July 29, 2022:

For those subject to VAT in the Governorate of Muscat the Auditor Services Department of the Tax Authority launched awareness campaigns on the importance of tax compliance from 24 July to 18 August.

Specialists from the Working Group carried out awareness-raising campaigns in the Auditor Services of the Tax Authority on 24 July by visiting a number of shops in the state of Muttrah. They provided subjects with necessary information on the accurate methods of recording tax and the timely submission of tax returns through the electronic portal of the tax authority.

During the awareness drive, brochures and manuals on tax laws were also distributed. These manuals also explain the step-by-step process to clear all tax transactions in their electronic system.

The widespread campaign contributes to raising awareness of the importance of tax compliance and also helps ease the completion of tax transaction.

View more details.

date: 20220714

Organized By: Times Of Oman

External URL: https://timesofoman.com/article/118068-suspension-of-withholding-tax-on-dividends-and-interests-extended

Muscat July 14, 2022:

As part of the Sultanate of Oman’s Vision 2040 plan with a vision of achieving high economic growth, His Majesty Sultan Haitham bin Tarik floated Oman’s Economic Stimulus Plan on 3 March 2021. According to the plan, a circular was issued by Capital Market Authority (CMA) announcing the suspension of the collection of withholding tax at 10% on dividends of shares, returns on Sukuk and interests on bonds till May 6, 2022.

The circular was addressed to the general public of investors, public joint stock companies, Muscat Stock Exchange, Muscat Clearing and Depository Company, audit and law firms and the companies operating in the field of securities.

However, in relation to the questions raised on social media by investors and those interested in investing on the Muscat Stock Exchange on the fate of the decision, a new Circular 11/2022 was issued announcing the extension of the suspension of the collection of withholding tax on dividends and interest for a further period of five years till 2025 (i.e no withholding tax will apply during these years). The CMA clarified that this decision to extend suspension till 2025 was taken as part of the economic stimulus plan.

Read more.

date: 20220707

Organized By: Times Of Oman

External URL: https://timesofoman.com/article/118602-omr301mn-collected-as-vat-in-oman-in-2021

Muscat July 7, 2022:

The value-added tax (VAT) increased by 0.3 percent over the estimated figure to reach OMR 301 million in 2021 in Oman. The authorities also collected OMR 103 million in selective tax, an increase of 8.8 percent during the same period.

This followed a unified Gulf Cooperation Council (GCC) agreement to implement VAT to find alternative sources of revenue other than oil and gas.

Statistics further reveal that the total tax and fee revenues decreased by 8 percent to reach OMR1.49 billion at the end of 2021 compared to the approved budget estimate of OMR1.62 billion. This decline was mainly attributed to the repercussions of the COVID-19 pandemic on the national economy which had resulted in frequent closures and restrictions on goods and travel movements through international ports.

Read more.

date: 20220614

Organized By: Times Of Oman

External URL: https://timesofoman.com/article/117882-oman-tanzania-sign-several-agreements-in-various-fields

Muscat June 14, 2022:

The Sultanate of Oman has signed an agreement with the Republic of Tanzania to avoid double taxation and prevent tax evasion on income. A number of other memoranda of understanding have been signed-in various fields that cover energy, tourism, natural resources, higher education and training and national museums.

A tripartite memorandum was signed between the Oman Chamber of Commerce and Industry, the Tanzania Chamber of Commerce, Industry and Agriculture and the Zanzibar National Chamber of Commerce. A memorandum was signed between the Oman Investment Authority and the Zanzibar Investment Promotion Authority.

An investment fund will also be established between the two countries that will be concerned with investment in several fields including agriculture, fishing and mining.

Read more.

date: 20220531

Organized By: Times Of Oman

External URL: https://timesofoman.com/article/116617-expat-faces-fine-jail-term-and-deportation-for-tax-evasion

Muscat May 31, 2022:

An expat has been fined OMR 1,000 and was imprisoned for a month for non-adherence to tax returns submission. The court also ordered his deportation from the country at the end of his sentence.

Tax Authority said in a statement “The Court of First Instance in the Wilayat of Al Buraimi recently issued a court ruling against one of the companies operating in the Sultanate of Oman that is not obligated to submit tax returns for violating the provisions of the Income Tax Law issued by Royal Decree No. 28/2009 and committing a misdemeanor of non-compliance to submit tax returns.”

The Anti-Tax Evasion Department received a notification from one of the partners in the company on the mishandling of financial transactions. By referring to the records in its electronic system it was found that the accused did not file tax returns.

Read more.

date: 20220518

Organized By: Oman Tax Authority

External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/News_879.aspx

Riyadh May 18, 2022:

During the inspection process of one of the vehicles at Al Haditha port, Zakat, Tax and Customs Authority (ZATCA) managed to thwart an attempt to smuggle 29,000 Captagon pills found hidden in an artistic way inside glass boxes containing cheese.

The Captagon pills were discreetly inserted in plastic gloves and placed inside cheese containers, which were then cleverly placed within the luggage carried by the smuggler inside the vehicle. In coordination with the General Directorate of Narcotics Control, the consignment was seized and the culprit was arrested.

The authority confirmed that smugglers are seeking to exploit everything to try to introduce such contraband into the Kingdom through its land, sea and air customs outlets. However, the authority is on the lookout for such illegal attempts and seeks to combat drug smuggling of all kinds in its Kingdom.

The authority called on everyone to contribute to combating smuggling and protecting the society and the national economy by reporting defaulters on the number designated for security reports (1910) or via e-mail 1910@zatca.gov.sa or the international number (00966114208417).

Read more.

date: 20220517

Organized By: Oman Tax Authority

External URL: https://zatca.gov.sa/ar/HelpCenter/guidelines/Documents/E-commerce%20Guideline.pdf

Riyadh May 17, 2022:

The General Authority of Zakat and Tax (GAZT) launched an interactive guide to educated online stores about the requirements of value-added tax. The guide will further enable e-storeowners to abide by their duties related to value-added tax and guide them on how to register, file a declaration and pay the due tax.

The guide outlines electronic stores as those operating through independent websites, social media platforms, smartphone applications, or instant chat applications.

The guide also does clarify the obligations of online store owners whose annual sales exceed 375,000 riyals annually before the Zakat and Income Authority. It includes registering for value-added tax, displaying the tax certificate in the online store, and filing tax returns on time.

View the Value-Added Tax Guide for E-Shops in Arabic.

Read more.

date: 20220509

Organized By: Oman Tax Authority

External URL: http://www.allaboutvat.com/wp-content/uploads/Financial-Services-Sector-VAT-Guide.pdf

Muscat May 9, 2022:

The Oman Tax Authority (OTA) has finally issued a long-awaited VAT Guide for the Financial Services Sector in English on its website.

The Guide offers guidance on the application of the VAT Law and its Executive Regulations. It cover prime topics in banking, insurance, and Islamic Finance and outlines VAT treatments for many transactions and items, making it a useful reference for banks and other financial institutions when establishing suitable VAT treatment.

date: 20220422

Organized By: Oman Tax Authority

External URL: https://timesofoman.com/article/115553-shops-urged-to-put-list-of-all-vat-exempt-items-in-oman

Muscat April 22, 2022:

Shop owners in Oman have been urged by the Consumer Protection Authority (CPA) to clearly label the list of zero-rated VAT products so as to not confuse or try to trick customers into paying more for such goods.

The CPA issued a notice stating “We direct all the commercial centers and shops across the various governorates of the Sultanate of Oman to affix labels mentioning all goods exempt from value-added tax.” Most of these VAT exempt items are staples essential for day-to-day life.

The list of items exempted from VAT include:
• Foodgrains such as wheat, rice, barley and corn, and flours made from them.
• Milk products in their various forms, i.e. plain milk, milk powder, cheese and yoghurt.
• Varieties of breads; water, salt and sugar.
• Fruits and vegetables.
• Meat, fish, and poultry.
• Coffee and tea.
• Medicines and baby products.

Read more.

date: 20220420

Organized By: Oman Tax Authority

External URL: https://timesofoman.com/article/115722-submit-your-tax-returns-by-this-date-tax-authority

Muscat April 20, 2022:

The Oman Tax Authority (OTA) has urged taxpayers subject to the provisions of Value-added Tax (VAT) to submit tax returns for the first three months of 2022 by the end of April.

The Tax Authority said in a statement: The period for submitting tax returns for the first quarter of 2022 ends on April 30. Hence the concerned are requested to file their returns before the lapse of the mentioned period.

Read more.

date: 20220322

Organized By: Times Of Oman

External URL: https://timesofoman.com/article/114481-cpa-probes-complaints-about-vat-fraud-by-commercial-establishments

Muscat- March 22, 2022:

The Consumer Protection Authority (CPA) has started an investigation into complaints filed by consumers against some commercial establishments for charging value-added tax on products that are free of tax.

The Authority said “Work is underway to further probe into the matter, verify the accuracy and arrest the violators.”

The authority is fully monitoring the markets, and has requested consumers to actively report any violations that contradict regulations and laws of the land, that were established to organize markets, and protect consumer rights.

Read more.

date: 20220321

Organized By: Oman Tax Authority

External URL: http://www.allaboutvat.com/wp-content/uploads/قرار-رقم-89-2022-بتحديد-السلع-الغذائية-الخاضعة-لضريبة-القيمة-المضافة-بمعدل-الصفر-بالمائة.pdf

Muscat- March 21, 2022:

Oman Tax Authority (OTA) through Decision No. 89/2022 has expanded the list of zero-rated food items under zero-rated VAT. The new list now includes food products such as barley, corn, wheat, soybeans, cotton seeds, coconut or copra, and poultry food.

The products which are eligible for zero-rating are classified as per the Harmonized Code of Oman Customs tariff. The list is currently available only in Arabic.

date: 20220311

Organized By: Oman Tax Authority

External URL: https://bit.ly/3pUwfDq

Muscat – March 11, 2022:

As part of its effort to improve the efficiency of the tax system, Oman Tax Authority (OTA) signs the Convention on the Provision of Tax Stamp Services. The Authority signed an agreement to provide digital stamp services with De la Rue International, the world’s leading tax stamp printing company that specializes in the design of distinctive tax stamps.

The project of printing high-security digital stamps on selective products will be implemented in several phases gradually in the Sultanate of Oman. Each stage will target one type of selective goods traded in markets and the first phase is likely to begin in April for the targeted tobacco and cigarettes products. The last phase will involve the determination of the date for non-acceptance of goods without stamps.

Read more.

date: 20220304

Organized By: Oman Tax Authority

External URL: http://www.allaboutvat.com/wp-content/uploads/الدليل-الإرشادي-لضريبة-القيمة-المضافة-الأشخاص-المرتبطون.pdf

Muscat – March 4, 2022:

The Oman Tax Authority (OTA) released VAT Guide for Associated (Related) Persons including VAT groups in Arabic.

Guidance is provided on the formation of tax groups for VAT. Associated persons may register as a tax group for VAT purposes if the following conditions are met:

• All persons are tax resident in Oman;
• All persons are legal persons;
• All persons are registered for VAT according to the law;
• One person (the parent entity), in or outside the group, must have control over all other persons in the tax group;
• No person is a member of another tax group;
• None of the persons are registered in a special regime zone.

date: 20220124

Organized By: Times Of Oman

External URL: https://timesofoman.com/article/111098-muscat-municipality-to-reintroduce-municipal-tax

Muscat – January 24, 2022:

Muscat Municipality has issued a circular to business owners stating that the tax on all commercial activities and establishments, which were stopped as part of the economic stimulus package, will be reactivated from January 1, 2022.

The economic stimulus plan aimed at supporting the recovery efforts to mitigate the economic repercussions induced by Covid-19, which included an exemption from the municipal tax for hotel establishments, tourist restaurants, amusement centers and parks until the end of 2021.

Read more.

date: 20220112

Organized By: Oman Tax Authority

External URL: http://www.allaboutvat.com/wp-content/uploads/VAT-Registration-procedures-for-non-resident-applicants-1.pdf

Muscat- January 12, 2022:

The Oman Tax Authority (OTA) has published a guide on VAT Registration procedures for non-resident applicants.

The guide explains the relevant provisions of the VAT Law and the VAT Regulations regarding the VAT obligations of non-resident people. This includes guidance for non-residents to register with the OTA when the conditions for registration are met. This forms the date from which they are obliged to pay the tax in accordance with the provisions of this Law.

The person who has no place of residence in the Sultanate may appoint a responsible person or tax agent (representative) in Oman, for the specific procedures.

View more.

date: 20220107

Organized By: Oman Tax Authority

External URL: http://www.allaboutvat.com/wp-content/uploads/2022-01-06-VAT-Taxayer-guide-Oil-and-Gas.pdf

Muscat- January 07, 2021:

Oman Taxation Authority (“OTA”) has issued a guide to provide additional interpretation and guidance for the application of the VAT Law and its corresponding executive regulations to the Oil and Gas Industry in Oman. The guide throws clarification on important practical aspects for the industry in Oman.

The aspects include the applicability of VAT for upstream, midstream, and downstream activities performed by the sub-contractors, contractors, and operators. Each of these areas has been elaborately discussed through the guide. It also includes the scope of zero-rating under Article 93 of the Executive Regulations, which is one of the crucial areas for businesses operating within the sector.

Click here to view the detailed guide – VAT Taxpayer Guide- Oil and Gas.

For more information, please contact Oman Tax Authority:
P.O. Box: 285, P.C. 100, Muscat
Hours: Sunday – Thursday | 07:30-14:30
Telephone: +968 2474 6996
Email: info@taxoman.gov.om

date: 20211215

Organized By: Gulf News

External URL: https://gulfnews.com/world/gulf/oman/oman-confirms-no-plans-to-increase-vat-1.84370035

Muscat- December 15, 2021:

Oman’s Minister of Finance Sultan bin Salim Al Habsi has confirmed that the state will not follow Saudi Arabia and Bahrain on VAT rise. Omani Ministry declared that the standard 5 percent Value Added Tax (VAT) rate continues in 2022. Al Habsi affirmed ‘We have seen some countries increase the VAT tariff but our government has no intention to increase the current VAT.’

This move comes despite neighboring countries Saudi Arabia (15%) and Bahrain (10%) both raising VAT from the original Gulf Coordination Council launch rate of 5%. Of the six GCC states, Kuwait and Qatar are yet to implement VAT as part of the agreed VAT and Customs Union.

Read more.

date: 20210912

Organized By: Oman Tax Authority

External URL: https://bit.ly/3E8RY03

Muscat- September 12, 2021:

Oman Tax Authority and National Center for Financial Information signed a cooperation program for combating money laundering, terrorism financing and tax evasion crimes at the Tax’s premises.

The joint cooperation program aims to coordinate efforts between the parties for the exchange of information, experience and find the best practices towards combating money laundering, terrorism financing and tax evasion crimes. The program also intends to organize training programs and specialized workshops to educate tax payers.

The program was signed by His Excellency Saud bin Nasir Al Shukaily, the Chairman of Tax Authority and Lieutenant Colonel Abdul Rahman bin Amir Al-Kiyumi, the Executive Chairman of the National Center for Financial Information.

View more.

date: 20210707

Organized By: Oman Tax Authority

External URL: http://www.allaboutvat.com/wp-content/uploads/2021-07-06-VAT-Taxpayer-Guide-VAT-Return-Filing.pdf

Muscat- July 7, 2021:

The Oman Tax Authority published on its website a ‘VAT Taxpayer Guide‘ to offer guidance to taxpayers on filing their VAT returns. The guide aims to provide a better general understanding of taxpayers’ tax obligations. The document provides a step-by-step overview of the OTA’s VAT compliance expectations pertaining to :

• VAT Registration
• Filing a VAT return
• VAT return payment or refund
• Penalties
• Record Keeping

For more information, please contact the TA:

Oman Tax Authority
Muscat, Ruwi
P.O. Box: 285, P.C. 100
Telephone: +968 2474 6996
Email: info@taxoman.gov.om

date: 20210628

Organized By: Oman Tax Authority

External URL: https://tms.taxoman.gov.om/portal/web/taxportal/-/circular-1/2021-?redirect=%2Fportal%2Fweb%2Ftaxportal%2Fexcise

Muscat- June 28, 2021:

With reference to the circular of the Central Bank of Oman, dated 22 June, 2021 – all banks operating in the Sultanate are obligated not to deposit / transfer any amounts to Government accounts, without mentioning the details of depositing or transferring entity.

Tax Authority requests all taxpayers to include the details according to the type of tax, when they deposit or transfer any amounts to the bank accounts of the Tax Authority, as depicted in the pdf.

View the Full Circular.

date: 20210504

Organized By: OPAZ

External URL: https://opaz.gov.om/en/news/2021/sezad-and-free-zones-in-salalah-sohar-and-al-mazunah-are-classified-special-zones

Muscat- May 5, 2021:

SEZAD and free zones in Salalah , Sohar, and Al Mazunah are classified as Special Zones and the supply and transportation of goods and services are zero-rated of VAT.

The Public Authority for Special Economic Zones and Free Zones ( OPAZ ) said, ‘The Special Economic Zone at Duqm ( SEZAD ) and the free zones in Salalah , Sohar and Al Mazunah are classified as Special Zones in accordance with the provisions of Article ( 102 ) of the Executive Regulations of the Value Added Tax ( VAT ), issued in the Decision No ( 2021/53 ). This announcement comes post the coordination with the Tax Authority in regards to the implementation of VAT.’

In accordance with the conditions specified in the Article ( 103 ) of the regulations, all these special zones are subject to 0 % tax.

Therefore, OPAZ calls on all companies, enterprises, businesses and establishments operating in these zones to comply with the conditions stipulated in the VAT Executive Regulations, until the Tax Authority of Oman publishes detailed procedures for the purposes of applying VAT at a rate of zero percent in the Special Zones. These conditions include VAT Registration and VAT Administration.

date: 20210426

Organized By: Times Of Oman

External URL: https://timesofoman.com/article/100566-companies-require-certificate-to-collect-vat-from-customers-in-oman

Muscat- April 26, 2021:

All companies in Oman need to have a certificate of registration from the Tax Authority before charging customers value added tax (VAT) for goods and services. Those who do add the 5 percent VAT charge to customers without this certificate would be subject to penalties under the law.

According to an official at the organization, this is for all commercial enterprises including SMEs that offer goods or services subject to VAT. If owners of establishments that are not registered with the authority purchase goods from suppliers who have imposed VAT on them, they must retain all of the invoices of goods received, inclusive of VAT prices. The business must then register with the Tax Authority to obtain the registration certificate and commit to submitting tax declarations on time added the official.

VAT at the rate of 5 percent came into effect in Oman on April 16, 2021. The first round for companies to register for VAT took place between February 1 and March 15, 2021.

Although this period has elapsed, companies are required to register themselves in the second duration- April 1 to May 31, 2021.

Click here to read more.

date: 20210425

Organized By: Sultanate of Oman Tax Authority

External URL: https://tms.taxoman.gov.om/portal/vat-tax

Muscat- April 25, 2021:

Oman Tax Authority has released guides on online registration and a list of most asked questions on VAT on their portal.

VAT Law

• VAT Law Translation

VAT Regulations

• VAT Regulation unofficial english version

Registration Forms

• VAT Registration Application – For Resident no CRN
• VAT Registration Application – For Non Resident

Manual Guides and FAQ’s

• VAT – Individuals – FAQ
• Information Sheet
• VAT – Business – FAQ
• Determining Food Items subject to Value Added Tax at Zero Rate
• Determining the Mandatory and Voluntary Registration Thresholds
• Determining the VAT Registration due Dates and Effective Dates
• VAT Transitional Registration Guide
• VAT Registration Manual Guide – Persons with CRN
• Guide on VAT Non Resident Application

Click here to view the guides.

date: 20210412

Organized By: Times Of Oman

External URL: https://timesofoman.com/article/zero-vat-on-488-food-items-in-oman

Muscat – April 12, 2021:

Nearly 500 food products commonly used by people in Oman will be subject to zero taxation under the Value Added Tax, once it comes into effect.

The measure is part of the Social Security Scheme issued by His Majesty Sultan Haitham Bin Tarik, and developed by the Ministry of Commerce, Industry, and Investment Promotion, in association with other government bodies.

Under the scheme, the number of basic food commodities charged a zero rate VAT will be increased to 488 from 93.

Furthermore, all VAT charges related to electricity consumption for citizens who have up to two residential category subscriptions will be paid by the government. VAT is expected to come into effect across the country on April 16.

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date: 20210405

Organized By: Oman Observer

External URL: https://www.omanobserver.om/some-medicines-medical-equipment-exempted-from-vat/

Muscat- April 4, 2021:

The Head of the Tax Authority has issued decision 57/2021 that outlines certain medicines and medical equipment would be subject to value-added tax (VAT) at zero rate. Based on VAT Law promulgated by Royal Decree and based on the requirements of the public interest, it was decided:

Article 1:

Supplies of medicines, herbal medicines, biological preparations, health (hygienic) preparations, food for medical use and medical equipment are subject to value-added tax at zero rates provided a release permit is issued by the Ministry of Health in accordance with the customs code.

Article 2:

This decision shall be published in the Official Gazette and be enforced from April 16, 2021.

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date: 20210331

Organized By: Times Of Oman

External URL: https://timesofoman.com/article/tax-authority-slams-social-media-rumours

Muscat- March 31, 2021:

The Tax Authority in Oman has denied the application of income tax for individuals starting from 2022 and has clarified that it is a rumour being circulated on social media.

Further, Oman’s Tax Authority in a statement issued online confirms that no official statement or decision has been issued in this regard. The matter is still under study according to what is announced in the medium-term fiscal balance plan. Therefore we note to verify the source of the information through official communication channels.

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date: 20210328

Organized By: Times Of Oman

External URL: https://timesofoman.com/article/violators-of-vat-to-face-strict-penalties-in-oman

Muscat- March 28, 2021:

Oman has drafted a series of strict penalties for violators of VAT due to be effective from April 16, 2021.

The Tax Authority mentioned the penalties stipulated are imprisonment for a period of not less than two months, or a fine that is not less than OMR1,000. The maximum penalties can reach imprisonment for three years and a fine that does not exceed OMR20,000. In the event of recurrence, the court may double the fine and increase the maximum penalty for imprisonment by more than half of this limit.

In the event of delay in tax payment, the law imposes a rate of 1 % of the value of the unpaid tax for each month of delay, starting from the end of the specified period for payment and up to the date of payment.

The law has mentioned 17 cases in Articles 100 and 101, and it includes cases of wilful failure to implement some of its provisions, cases of providing incorrect data or documents, and cases of doing what would hinder the employees of the Tax Authority or who are required to carry out their duties.

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date: 20210318

Organized By: Times Of Oman

External URL: https://www.timesofoman.com/article/ministry-announces-tax-exemptions-for-tourism-sector-in-oman

Muscat- March 18, 2021:

Oman’s Ministry of Heritage and Tourism has issued a circular on incentives for the tourism sector with an economic stimulus plan.

The plan was approved at the Council of Ministers, which his Majesty Sultan Haitham Bin presided on March 9, 2021. The initiative aims to achieve high growth rates as per Oman Vision 2040.

“It also aims to support efforts to extenuate the impact measures taken due to the pandemic on the national economy by providing a set of measures and initiatives that supports economic recovery, enhancing the performance of economic activities and foreign investment” states an official statement by Oman’s Ministry of Heritage and Tourism.

Incentives approved for the tourism sector include:

• Exemption from the income tax for hotel establishments for two tax years – 2020 and 2021.
• Exemption from the tourism tax payable by tourism establishments to the Ministry starting from March 10, 2021, until December 31, 2021.
• Postponement of the settlement of the tourism tax until March 9, 2021, payable by tourism establishments at the end of December 2021.

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date: 20210316

Organized By: Khaleej Times

External URL: https://www.khaleejtimes.com/business/economy/oman-to-levy-5-vat-from-next-month

Muscat- March 16, 2021:

Oman will start implementing five per cent value-added tax (VAT) from April 16,2021. It is estimated that VAT will contribute 1.5 per cent towards the country’s gross domestic product (GDP) and raise around 400 million Omani riyals (Dh3.8 billion; $1 billion) per year for the country’s exchequer.

The implementation of VAT comes in line with the GCC framework that was agreed between the six nation bloc. Saud bin Nasser bin Rashid Al Shukaili, chairman of the Tax Authority in Oman, said all necessary preparations to implement VAT from April 16 have been completed.

Oman VAT timeline

Click here to read more.

date: 20210315

Organized By: Arab News

External URL: https://www.arabnews.com/node/1822606/business-economy

Muscat- March 15, 2021:

Oman plans to cut income tax for small and medium businesses for 2020 and 2021 and will offer long-term residency permits for foreign investors. The plans are part of Oman’s Vision 2040 aimed at diversifying the economy away from oil, which makes up the bulk of state revenues.

Oman is one of the Gulf’s weakest economies and was badly hit by the coronavirus pandemic and low oil prices. The International Monetary Fund revealed its economy likely shrank 6.4 percent in 2020 and anticipates to make a modest recovery to 1.8 percent growth this year.

The measures also include income tax being reduced for companies in sectors aimed at economic diversification that will begin operating this year. Oman will also cut rent at the Duqm Special Economic Zone and industrial areas until the end of 2022.

click here to read more

date: 20210314

Organized By: Tahawultech

External URL: https://www.tahawultech.com/news/tally-solutions-launches-its-vat-ready-software-tallyprime/

Muscat- March 14, 2021:

Tally Solutions, the leading international business management software provider launched a Value Added Tax (VAT) software, TallyPrime Release 1.1.3 to assist the Oman business owners towards an easy transition to the new tax regime.

While TallyPrime will enable businesses to set-up the software quickly and record and print VAT bills in Arabic and English with ease, it will also allow them to start their VAT compliance journey from day one. The software’s unique in-built error detection and correction capability ensures accurate data, so businesses always remain compliant.

Click here for more.

date: 20210310

Organized By: Times Of Oman

External URL: https://timesofoman.com/article/know-oman-vat-payments-also-due-on-excess-unsold-goods

Muscat- March 10, 2021:

Value added tax is due on excess stocks of goods that have been bought by companies to be sold to customers, even if they remain in storage once that company has ceased operations, a legal expert in the country has said.

Even if a company is storing the goods or all commercial activities have stopped, the company will be liable to pay VAT for these goods. Only goods and services provided by commercial organizations as gifts would be exempt from taxes. As a commercial trader engaged in marketing, distribution, manufacturing, or retail, one should budget for this tax. The general rule is that the new VAT tax should apply to all products and services.

Oman is introducing VAT on April 18 2021 and all companies that will be liable for VAT should register before this date.

Click here to read more.

date: 20210218

Organized By: Khaleej Times

Oman- February 17, 2021:

Oman’s finance ministry has indicated in its 2020-2024 economic plan that it is considering imposing a wealth tax in order to make government finances more sustainable as Covid-19 takes its toll on business activity.

The International Monetary Fund (IMF) has estimated that Oman’s budget deficit will reach nearly 19% of GDP this year. The new economic plan is projected to reduce that to 1.7% by 2024, according to a statement from the ministry of finance.The proposed tax would apply to high-income individuals, but the plan does not specify what the income brackets would be.

Currently none of the six Gulf Cooperation Council (GCC) states, collect income tax from individuals. Oman will become the first gulf state to introduce income tax on high earners in 2022.

Click here to view more.

date: 20210203

Organized By: Oman Tax Authority

External URL: https://tms.taxoman.gov.om/portal/web/taxportal/-/vat-registration-start?redirect=%2Fportal%2Fweb%2Ftaxportal%2Fvat-tax

Oman- February 3, 2021:

The Sultanate of Oman Tax Authority has announced the commencement of VAT registration from 1st February 2021 until 15th March 2021 for taxable persons with annual supplies exceeding or expected to exceed 1 million OMR. The voluntary registration will also be available for taxable persons with annual supplies or expenses exceeding or expected to exceed 19,250 OMR.

The registration must be made through the Oman Tax Authority’s Online Portal – www.taxoman.gov.om

Oman Tax Authority has released a list of ‘Manual Guides for VAT Registration’ explaining the registration requirements for business and individuals. It explains who is liable to register for VAT, and also explains the registration requirements in the period before the VAT Law is effective.

The Oman Tax Authority advises taxable persons to register for VAT within the preset deadlines to avoid any penalties levied on late registration. Taxable persons may source more information pertaining the registration procedure and other VAT details on the guides published on Oman’s Tax Authority website.

Click here to view the Guides for VAT registration.

date: 20210113

Organized By: Times Of Oman

External URL: https://timesofoman.com/article/new-executive-decisions-on-vat-implementation-issued-by-oman-tax-authority

Muscat- January 13, 2021:

In a series of executive decisions issued, the Tax Authority in Oman has announced the framework and related guidelines for registration of tax-eligible businesses and organizations in the Sultanate.

Businesses with an annual turnover of a minimum of OMR 38,500 are required to mandatorily register with the Tax Authority. However, registration is optional for businesses with a minimum turnover of OMR 19,250. These limits are in with the provisions of the GCC Unified VAT Agreement signed by the Sultanate in November 2016.
SMEs and micro-businesses have been given additional time to register their firms in order for them to equip themselves with the requisite IT systems and bookkeeping methods required to comply with the requirements of the VAT law.

First to register will be businesses with an annual turnover of over OMR 1 million. They must register between February 1 and March 15, 2021.

For businesses with a turnover of over OMR 500,000, the deadline for registration is July 1, 2021.

VAT is an indirect tax on most goods and is levied on the value-added of business operations, which is the difference between the final price of a commodity and the cost of materials and services.Confirming the implementation of VAT, the Ministry of Finance announced in the 2021 General Budget that the new level would be imposed on goods and services in Oman starting from April 2021, with exception of the education and health sectors and some basic commodities.

According to Royal Decree 121/2020, a 6-months grace period has been granted for the taxpayer to register, and prepare their internal system to implement the VAT. The value-added tax rate of 5 per cent to be applied in Oman is among the lowest rates at the international level.

“Therefore, it is expected that the impact of VAT on the cost of living in Oman will be minimal. The VAT will have a positive impact on the economic and social development and the international competitiveness of Oman. The financial resources obtained from this tax will contribute to building a sustainable economy for future generations, and it will also contribute to improving public services and continuing the development of infrastructure in future,” the ministry noted.

date: 20210113

Organized By: Times Of Oman

External URL: https://timesofoman.com/article/over-90-food-items-subjected-to-zero-tax-rate

Muscat- January 13, 2021:

The Chairman of the Tax Authority issued three executive decisions related to the implementation of the value-added tax, which will come into effect on April 16 of this year 2021.

Ministerial Decree 2/2021, dated 4 January 2021, detailed the list of around 93 food items that will be subject to VAT at the zero rate in Oman.

The list includes the following food products :

• Meat, fish and poultry
• Milk and dairy products
• Fresh eggs, vegetables and fruits
• Coffee and tea
• Cardamom creels
• Olive oil
• Sugar
• Bread
• Salt
• Bottled drinking water
• Nutritional preparations for children

date: 20201217

Organized By: Muscat Daily

External URL: https://muscatdaily.com/Oman/389052/Zoho-launches-VAT-compliant-software-in-ME

Muscat- December 17, 2020:

Zoho, a global information technology company that offers over 45 business applications including CRM, business email and help desk, has launched its VAT-compliant accounting software, Zoho Books in the region.

As businesses in the sultanate prepare for the implementation of VAT, Zoho Books helps their seamless transition to the new tax law and ensure VAT compliance.

Having helped tens of thousands of businesses in the United Arab Emirates, Saudi Arabia and Bahrain easily transition to VAT with country-specific editions, Zoho Books is now offering its expertise to businesses in Oman to help with their accounting and VAT filing needs. The software has also been accredited by the Federal Tax Authority in the UAE and General Authority of Zakat and Tax in Saudi Arabia.

Hyther Nizam, president – MEA, Zoho Corp, said, “With the experience that we gained from bringing out tax-specific editions in the UAE, Saudi Arabia and Bahrain, we’ve built Zoho Books to provide a complete accounting solution for Omani business owners. Zoho Books, with its in-built features can help businesses create VAT-compliant transactions, record and file VAT returns with ease. It is also a great opportunity for businesses to transform their current business processes and adopt digitalization and automation of business finances.”

Click here to read more.