Oman: Tax relief extended for 2020 (COVID-19)

Tax-relief measures under an economic stimulus plan have been extended by the tax authority in response to coronavirus

Tax-relief measures under economic stimulus plan have been extended by the tax authority

Tax-relief measures under an economic stimulus plan—relief offered in response to the coronavirus (COVID-19) pandemic—have been extended by the tax authority.

The following table outlines the extension of certain tax relief measures (as previously announced under the economic stimulus plan). These tax relief extension measures are based on changes reported on the portal of the tax authority as of 27 April 2021 or based on informal discussions with the tax authority. 

Tax relief measures

Extension

Earlier relief per economic stimulus plan

Recent update by tax authority

Tax rebate of 1% of the tax due (up to a maximum of OMR 10,000) for taxpayers who file their tax returns and pay taxes by a prescribed due date

Tax year extended

Applicable only for tax year 2021 for all classes of taxpayers

Applicable for tax year 2020 as well for all classes of taxpayers (thereby offering immediate relief)

Tax rate for small and medium-size enterprises (SMEs) reduced to 12% (from 15%) for the tax years 2020 and 2021

Taxpayer’s coverage expanded

Applicable for SMEs as defined by:
  • SMEs Development Authority (Riyada); or
  • SMEs not registered with Riyada but registered with the Ministry of Commerce, Industry and Investment Promotion (MOCIIP)

Extended to additional classes of taxpayers (Omani companies and establishments but excluding permanent establishments such as branch offices and Oman operations of foreign companies)

Eligible taxpayers must cumulatively satisfy two requirements (as currently applicable to SMEs registered with Riyada):

  • Turnover for the tax year of less than OMR 5 million; and
  • Total number of employees less than or equal to 150 persons

KPMG observation

Taxpayers eligible for relief under these measures and that have filed their tax returns and paid taxes for tax year 2020 need to consider if there are refund opportunities. Those eligible taxpayers that have not yet filed their tax returns and paid taxes for tax year 2020 need to consider taking advantage of the extended benefits.

Read an April 2021 report prepared by the KPMG member firm in Oman 

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