State Council submits draft to HM on amending Income Tax Law, hails Job Security Fund

Business Tuesday 18/August/2020 16:57 PM
By: Times News Service
State Council submits draft to HM on amending Income Tax Law, hails Job Security Fund

Muscat: The State Council forwarded to His Majesty Sultan Haitham bin Tarik, the draft 'Amendment of the Income Tax Law', with the opinion of the two councils.
The Council also discussed the draft law on Value Added Tax (VAT) referred by the Council Of Ministers as a matter of urgency and the report of the Council's Economic committee on it. After the discussion, it was decided to return the draft law to Majlis Al Shura to consider the articles and identify any discrepancy in it.
The Council appreciated the noble directives of His Majesty Sultan Haitham bin Tarik - may God protect him- to establish the Job Security Fund and issued a decree approving its system, working mechanisms and financing, noting that the fund will guarantee social security to Omani society. He stressed that the fund will play a tangible role in identifying practical and effective solutions for Omanis whose services have been terminated, and that it will also contribute later in helping job seekers.
This came during the tenth ordinary sitting of the first annual session of the seventh term held by the Council on Tuesday, chaired by Dr.Yahya bin Mahfoudh Al Mantheri, State Council Chairman, in the presence of Council members and the Secretary-General of the Council, along with the participating members via video conferencing.
At the outset of the sitting, the Al Mantheri delivered a speech welcoming the members, and reviewed the agenda. He stressed the sitting was devoted to discussing the draft for the amendment to the Income Tax Law referred by the Council of Ministers as a matter of urgency, the report of the Economic Committee of the Council, and the draft Value Added Tax Law (VAT) referred by the Council of Ministers as a matter of urgency and the report of the Economic Committee of the Council.
The Council also praised the tireless efforts exerted by the Supreme Committee in charge of examining the mechanisms of dealing with developments resulting from the spread of the Coronavirus (COVID 19) to address the pandemic in light of the good results achieved in implementation of the generous directives of His Majesty the Sultan. The Council wished further continuation of citizens and residents adherence to the precautionary and preventive measures that ensures efficient tackling of the coronavirus and prayed to God Almighty to protect the country and its people from all evil and harm.
The Council began discussion of the draft for the “amendment of the Income Tax Law" with the statement of the Economic Committee. Sheikh Mohammed bin Abdullah Al Harthy, Economic Committee Head, explained that the proposed amendments to the Income Law come within the framework of the Sultanate's accession to a number of international agreements on tax affairs.
Pointing out that joining these agreements requires establishing provisions of internal legislations that include specifying the data to be disclosed and the obligations due and protecting the confidentiality of data that are exchanged with the tax authorities in other countries for the purposes of implementing the agreements.
Pointing out that these amendments will enable the tax authority to exchange tax information with other countries in accordance with the specified legal framework.
During the extensive discussions on the draft law amending the law, the members expressed their views and observations on its articles.
The Economic Committee Head indicated that the Supreme Council of the Cooperation Council for the Arab States of the Gulf had decided in its 36th session to impose a value-added tax in a unified manner for the GCC countries, at a rate of 5% on the import and supply of goods and services at every stage of production and distribution.