Every taxpayer shall adhere with the tax registration when carrying out the entry procedures in the commercial registration at the Ministry of Commerce & Industry. The taxpayer shall notify the Tax Authority when not carrying out any entry in the commercial registration. The notification shall be prepared on the prescribed form for this purpose within (60) sixty days from the date of incorporation or the commencement of activity whichever is earlier.
In case of failure, the Tax Chairman shall impose a fine not exceeding 2,000 Omani Rial.
The tax rate upto tax year 2016 is as follows:
- The first thirty thousand Omani riyals nothing
- Exceeding R.O. 30,000 12%
The tax rate as of tax year 2017 tax year is as follows:
- Enterprise 3%
- Other Taxpayers 15%
Companies engaged in the field of oil exploration is 55% with respect to income from the sale of oil.
The law requires all Taxpayers (except the Enterprise) to submit two returns for any tax year to the Tax Authority on the forms prepared for this purpose:
- The provisional return is submitted within three months of the end of the tax year.
- The final return shall be submitted within six months of the end of the tax year. The audited accounts shall be accompanied by an auditor licensed by law to practice his profession of accounting and auditing in the Sultanate.
The Law requires the taxpayers to pay the tax due and payable, either as per the provisional or final return or as per the tax assessment on the date specified by the Law thereto. Non – payment of tax shall result in:
- Imposing an additional tax at 1% per month of the unpaid amount of tax due and payable. This tax is calculated for the period extending from the date on which the tax is due to the date of the payment.
- Collecting the tax forcibly by adopting the procedures specified for the administrative enforcement under the System for Collection of Taxes, Fees and other Amounts Payable to the Units of the Administrative Apparatus of the State.
In reference to the Income Tax Law promulgated by Royal Decree No. 28/2009, and in light of the issuance of Chairman Decision No. 78/2020 on Standards for Automatic Exchange of Financial Account Information, the Tax Authority would like to alert all addressees by the aforementioned decision of the importance to fulfil the obligations stipulated in the Standards. Designated persons may register and report financial account information through the Oman Tax Authority AEOI Portal (aeoi.taxoman.gov.om), and in case of no account is identified as a Reportable Account, the Financial Institution shall file a report to the Tax Authority stating that the Institution maintains no Reportable Accounts for that year. Please be reminded that adhering to the provisions of the standards will avoid imposing the administrative penalties and punishments stipulated in Articles (181) and (185) of the Income Tax Law.