Tax flash: Oman Tax Law amendments

Oman Tax Law amendments

The much awaited amendments to the ERs have been made through Ministerial Decision No. 14/2019 published in the Official Gazette today. These amendments supplement and clarify the application of certain provisions of the Tax Law that were amended pursuant to Royal Decree No. 9/2017, issued in February 2017.

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Ashok Hariharan

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KPMG Lower Gulf

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Executive Regulations (ERs) to Oman Tax Law amended

These amendments are likely to impact many taxpayers. While most of the amendments will apply prospectively, certain amendments, such as specified withholding tax exemptions, may require close evaluation to understand their potential coverage and impact on past transactions.

Key amendments include: 

  • Clarification on the scope, applicability and exemption from withholding tax related to interest, dividends and provision of services
  • Initiation of tax cards rules
  • Introduction of new tax reporting requirements for government and other public bodies
  • Regulations related to tax inspection, search and seizure
  • Amendments to regulations governing deductibility of bad debts, in-kind donations, increase in limits for allowed managerial remuneration to partners
  • Clarification on tax exemptions engaged in industrial activity
  • Explanation of electronic submission of tax returns and electronic document services by tax authorities
  • Operational rules and relaxation of conditions for small taxpayers

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