Oman: Taxpayers cautioned about business transactions with unregistered companies, establishments

A notice cautioning taxpayers not to have business transactions with companies or establishments that do not hold a valid tax card in Oman

Taxpayers cautioned about business transactions with unregistered companies, establishment

Oman’s tax authority issued a “taxpayer specific” notice that cautions taxpayers not to have business transactions with companies or establishments (including permanent establishments of a foreign company) that do not hold a valid tax card in Oman.

  • Taxpayers engaged in business transactions with companies and establishments in Oman need to obtain a copy of the tax card from each company and establishment.
  • Taxpayers engaged in business transactions with non-residents need to obtain the following documents:
    • A valid tax residency certificate issued by the non-resident’s tax authority (as duly attested by Ministry of Foreign Affairs or Omani embassy in the non-resident country). 
    • A no “permanent establishment” declaration certificate, duly signed and stamped by the non-resident

VAT guide for real estate sector

The tax authority released a value added tax (VAT) guide for the real estate sector providing guidance on the applicability of VAT to the real estate sector in Oman. It specifically clarifies:

  • The VAT treatment in instances of a sale or lease of real estate owned by individuals
  • The credit or refund eligibility of input tax incurred on construction costs
  • The VAT registration obligation on a non-resident providing real estate-related services to a non-taxable person in Oman
  • The VAT treatment of retention money or withheld payments

Read a September 2021 report prepared by the KPMG member firm in Oman

 

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