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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