The Ministry of Justice and Legal Affairs has published two decisions on the operating procedures for the Committee and zero rating of VAT on certain medicines and medical devices.

Tax Authority Decision Number 57/2021 (Decision Number 57/2021)

Decision Number 57/2021 regulates the working of the Committee that is responsible for adjudicating Income Tax, Value Added Tax and Excise Tax related “grievances”, the second stage of disputes following objections.  This Decision also repeals and replaces the Regulations governing the work of the Income Tax Committee issued by Ministerial Decision No. 52/2004.

Of particular note is that the applicant must submit the grievance to the Committee:  

  1. In three copies
  2. In Arabic
  3. Along with (certified) copies of all supporting papers and documents
  4. Within (45) forty-five days of the date of notification or date of knowledge of the decision to be appealed against or date of expiration of the period prescribed for adjudicating the objection where the decision is not issued

The key steps and timelines in the grievance redressal process are summarized below: 





Reference of the grievance by the Secretary of the Committee to the Oman Tax Authority

7 days of the date of submission of the grievance


Submission of reply by the Oman Tax Authority to the Secretary of the Committee

30 days of the date of receiving the grievance memorandum


Submission of the report by the Technical Expert of the Committee

7 days of the date of receiving the grievance file


Adjudication of the grievance

Not specified


Notification of the decision to the applicant

7 days of the date the decision is signed by the Chairperson and the Secretary of the Committee

The Committee is required to observe the standards and general principles of litigation procedures and hearings in concluding the hearing.

The applicant has the right to access the reply submitted by the Oman Tax Authority and appoint a representative, attorneys, accountant or auditor duly licensed by law to practice the profession of Accountancy and Auditing.

To access the Arabic version of Decision Number 57/2021, please click here

Tax Authority Decision Number 59/2021 (Decision Number 59/2021)

Decision Number 59/2021 provides for the zero rating of supply of medicines, herbal medicines, biological products, health products, food for medical use and medical devices, for which the Ministry of Health issues permission for release in accordance with the Customs Code.

To access the Arabic version of Decision Number 59/2021, please click here.

This decision comes into effect from 16 April 2021.

Next steps

Tax disputes are inevitable as new tax reforms are introduced and interpretation of tax laws evolves. An effective grievance redressal mechanism helps tax authorities, as well as businesses, deal with tax disputes efficiently, consistently and in a time bound manner. Whilst Decision Number 57/2021 regulates the working of the Committee, it does not set an overall time limit for completion of the adjudication process. 

The zero rating of medicines and medical devices is also important for those in the medical sector, as well as end consumers.  However, the scope of zero rating currently set out is very broad and open to interpretation.

KPMG has a dedicated team of experienced indirect and corporate tax professionals based in Oman supported by a larger, experienced regional team. If you need any assistance with tax matters, including VAT implementation or tax dispute resolution in Oman, please reach out to your tax advisors at KPMG or the contacts mentioned below.