Certain tax relief measures were announced by the Oman Tax Authority (“TA”) on 8 July 2020, in relation to the due dates for payment of taxes due in the year 2020. This comes in the wake of Supreme Committee decision pertaining to the Covid-19 pandemic, which authorized the TA to implement these measures.
These measures inter-alia include:
- The suspension, until 30 September 2020, of:
- all fines related to the failure of compliance with the due dates for filing tax returns, both provisional and final, along with the annual audited accounts for the year ended 31 December 2019;
- additional taxes (1% per month) triggered by non-payment of income tax due to be paid for the year ended 31 December 2019; and
- additional taxes (1% per month) arising from 1 January 2020 to 30 September 2020 due to non-payment of income tax due for the years ended prior to 31 December 2019.
The above effectively implies that the due date for filing the tax returns for the year ended 31 December 2019 has been extended to 30 September 2020.
- Extension of the due date for payment of taxes and suspension of additional tax (1% per month) for taxpayers whose year ends after 31 December 2019, by a period of 9 months from the end of the accounting year. As in the case of the above, the due date for payment of taxes has effectively been extended by 9 months although no specific suspension of fines has been granted similar to the returns for the year ended 31 December 2019.
- Allowing tax payments in installments to be approved for the year ended 31 December 2019 with the possibility of non-levy of additional tax (1% per month) based on facts and circumstances of each case.
- Allowing rescheduling of previously approved payment of tax in installments for prior tax years with the possibility of non-levy of additional tax (1% per month), based on facts and circumstances of each case.
- Allowing stay of demand requests until conclusion of objections even if such a request is made after the statutory period of 30 days of filing the objection.
- Allowing the grant of additional time for submission of details and information during assessment and objection proceedings. If additional time is granted by the TA, the time frame as specified by the income tax law for completion of assessment proceedings, or objection by the TA, shall be extended by such additional time granted.
The measures detailed above come as a welcome move by the TA to provide relief to taxpayers who have not already filed their returns, and who are adversely impacted by the current Covid-19 pandemic. We recommend our clients engage in discussion with the TA through their tax advisors to seek clarity on these announcements, as necessary.