• Service: Tax, Global Indirect Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 7/24/2013

Oman - VAT possible by 2016; corporate tax inspections update 

July 24: The Oman government and other Gulf Cooperation Council (GCC) countries are considering a common framework for implementing a value added tax (VAT).

An official of the Oman government publicly stated that a VAT system could be implemented in Oman by 2016.

The current proposals would be for a simple VAT system with a low (5%) rate, limited exemptions, and a “high” registration threshold.

Read a July 2013 report prepared by KPMG International: Oman - VAT, penalties, taxpayer services & other developments

Other items discussed in this report indicate that:

  • Taxpayers subject to tax audits by Oman’s Large Taxpayer Unit will be assigned new inspectors
  • Close scrutiny by Oman’s Tax Department of payments to foreign companies that do not have a permanent establishment in Oman
  • Changes to the withholding tax rate on royalties under the Oman-France income tax treaty

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