It is being reported that the Council of Ministers in Oman has referred two laws to the Shura Council—specifically one proposing amendments to the income tax law that would implement country-by-country (CbC) reporting.
Oman is expected to amend the income tax law to implement measures as part of Oman’s commitment regarding the four minimum base erosion and profit shifting (BEPS) standards of the OECD.
Oman is also expected to introduce detailed transfer pricing guidelines and documentation regulations to govern arms’ length pricing of transactions between related parties.
With the referral to the Shura Council, the council now has one month to reach a decision on the proposed laws. The current session of the Shura Council is scheduled to end 16 July 2020, but many believe the session would be extended to allow for a decision on both items. Once the Shura Council acts on the measures, they can be referred to the State Council. At this point, the State Council is required to act (either by approving or amending the measures) within 15 days. Once the State Council reaches its decision on both items, the legislation will be submitted to His Majesty the Sultan, with the opinions of both the Shura and the State Council.
For more information, contact a tax professional with KPMG in Oman:
Ashok Hariharan | +96 824 749 231 | firstname.lastname@example.org
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