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


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 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.