Oman, Russia sign Double Tax Agreement (DTA)
Date: 05 Sep, 2023
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.
Oman Exempts EVs from VAT
Date: 15 Aug, 2023
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.
Oman and Russia Sign DTA Agreement
Date: 10 Jul, 2023
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.
Oman: OTA Calls on all VAT Registrants to Abide by the Provisions of the VAT Law
Date: 26 Jun, 2023
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.
Oman Tax Authority Grants Tax Exemptions for Electric Vehicles
Date: 10 Jun, 2023
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.