Corporate Tax Relief for Oman Businesses impacted by COVID-19

As of March 31^st, 2020, tax authorities are now providing tax relief for corporations that are currently doing business in Oman and have been affected by COVID-19 as well as any Government imposed precautionary measures that were put in place to counteract the pandemic in Oman.  These measures include:

• deferral of filing returns and making tax payments for up to 3 months from the original due date of March 31^st
• exemption from fines and penalties that are related to deferred filings and payments
• tax deductions for contributions or donations involved for handling the pandemic (must be in accordance with executive regulations and prescribed income tax laws

For example, if you haven’t filed your return or are making tax payments in installments, the deadline has been extended until June 30^th from March 31^st, the original due date.  Any additional taxes or penalties for filing or paying after the deadline will be waived, provided taxpayers in Oman are able to prove that this was due to the COVID-19 pandemic, including any Government imposed precautionary measures. If you are looking for tax services in Oman, it is best to contact a company that can assist you through the whole process.  

Additional Considerations where Donations, Installment Payments, and Objections to Tax Assessments are concerned

In addition to tax relief that applies to tax returns and tax installment payments, Oman Government authorities have made the following changes:

• Donations – donations towards measures that will prevent the spread of COVID-19 are fully tax deductible for Oman-based corporations according to Government tax laws and regulations.

• Installment payments – because of COVID-19, tax installment payments will be approved provided taxpayers can show that the delay has resulted from the pandemic. Any additional taxes that would normally be imposed will be waived.

• Tax returns and payments: To help corporates file tax returns and payments, it has been changed to 30^th June 2020. This leverage has been given considering the COVID- 19 precautionary measures, so there are no additional taxes or penalties that would be applicable.

• Objections to tax assessments – any objections to corporate tax assessments that are filed after the March 31^st due date will be accepted provided taxpayers can show proof that they’ve been adversely affected by the pandemic. Furthermore, any additional taxes or penalties that have been imposed on installments payments will be waived as a result.

For additional information regarding tax relief for corporations that have been negatively impacted by COVID-19, it is recommended that you seek the advice of professional tax services in Oman such as Intuit Management Consultancy (IMC Group).