New ministry’s tax regulation likely to impact taxpayers
Times of Oman 2019-02-11 21:49:00
Muscat: The amendments issued by the Ministry of Finance to the Tax Law are likely to impact many taxpayers, according to financial expert Ashok Hariharan.
The Ministry of Finance issued ministerial decree No. 14/2019, which amended executive regulations to the Tax Law.
According to Hariharan, who is the head of tax at KPMG, the much-awaited amendments to the executive regulations “supplement and clarify the application of certain provisions of the Tax Law”.
The decree specified rules governing the submission of tax returns and other documents, rules regarding tax cards, and the temporary tax exemption for Omani firms in industrial activities.
“In our view, these amendments are likely to impact many taxpayers. While most of the amendments will apply prospectively, certain amendments, such as withholding tax exemptions, may require close evaluation to understand their potential coverage and impact on past transactions,” Hariharan said.
According to Hariharan, some of the key amendments include, “Clarification on the scope, applicability and exemption from withholding tax related to interest, dividends and provision of services; introduction of new tax reporting requirements for government and other public bodies; regulations related to tax inspection, search and seizure; in addition to amendments to regulations governing the deductibility of bad debts, in-kind donations, and increase in limits for allowed managerial remuneration to partners.”