• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 10/29/2013

Oman - Taxpayer registration rules; increased tax audit activity 

October 29: Tax rules in Oman require:
  • Taxpayers must register with the Omani tax authorities within three months from the date of incorporation or commencement of activities, and any changes to the registration information must be communicated within two months from the date of the change.
  • Company accounts must be maintained in the currency of Oman, the Omani rial (OMR). If a company requires its accounts to be maintained in a foreign currency, the company must obtain prior approval from the Secretary General for Taxation. Approval may be granted for branches of foreign companies, but approval typically may not be granted for Omani-incorporated companies.
  • A foreign-owned subsidiary in Oman must be registered, and if the company has a foreign shareholding of over 70%, approval of the Council of Ministers is required.

Increased tax audit activity

With the approach of the last quarter of 2013, it has been observed that the tax authorities have started aggressively pursuing assessments of tax returns that will be time-barred in 2013 (i.e., tax returns filed in the 2008 tax year).

Prudent taxpayers will keep a close watch on communications from the tax authorities, and will respond to questions and requests for clarification to reduce the threat of arbitrary adjustments.

Read an October 2013 report prepared by KPMG International: Oman – Setting up foreign subsidiaries and tax audit trends

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