Oman’s taxation system to be amended

Business Saturday 05/November/2016 17:33 PM
By: Times News Service
Oman’s taxation system to be amended

Muscat: Oman’s taxation system in general will be amended including the tax rates that will be levied on companies during the coming period, the secretary general of taxation, Ministry of Finance said.
Saud bin Nasser Al Shukaili, Secretary General of Taxation, Ministry of Finance said that the Ministry has submitted an amended rate to Majlis Al Shura and State Council for consideration by the Council of Oman. A recommendation about this rate has been raised and it will be declared when the necessary legislations are promulgated, he added.
In response to a question about the value added value tax, Al Shukaili said that levying this tax is the outcome of joint efforts between the Sultanate and other Gulf Cooperation Council (GCC) states. The tax will be implemented when consensus is reached among the GCC states on the date of starting the implementation, he added.
He also further said that the value added tax agreement will be signed next week or after, but the implementation will start in 2018 as implementation is linked to having a local law in the Sultanate. The draft law has been prepared and will be submitted to the legislative authorities for revision.
He also noted that there will be selective price on some commodities, such as those harmful to health, such as alcohol, tobacco, ham, fuzzy drinks and energy drinks. The tax will be approved next week and will be implemented starting from 2017.
He said that the revenues from corporate income tax have seen a remarkable increase. He attributed this increase to the increase in the economic activity of the Sultanate and the increase in the number of companies, foreign investments and businesses by these companies. Moreover, some companies have started paying income tax after the expiry of the 10-year exemption period.