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Read more informationAmendments to Oman's Executive Regulations on Income Tax
The Official Gazette of Oman published Ministerial Decision No. 14/2019 issued by the Ministry of Finance on 10th February 2019 published the amendments to the Executive Regulations on Income Tax Law MD 30/2012. The amendments to Executive Regulation provide director remuneration, tax card system, withholding tax, donations, enterprise tax and etc.
The important amendments covered under this Executive Regulations are:
The least amount of the below categories is allowed as deduction from the member’s remuneration:
New amendments have limited tax exemption only to companies that carry out their main activity in the manufacturing sector.
Tax cards issued upon formal request by the taxpayer in official application format viz. Income Tax Form No. 11 introduced by the amendments. New taxpayers would be required to apply for the tax card during tax registration. The tax card shall be applicable for period of two years and renewable at end of the term. The card can be in digital or paper format.
To stimulate small business viz. medium or small enterprises the tax on enterprise shall be at rate of 0 or 3%.
The amended rules provide obligations and duties of taxpayers and tax inspectors with regards to the onsite tax matters.
The above amendments are the most sought amendments as they brought clarification to tax law provisions which were implemented by the Income Tax Law (ITL) vide Royal Decree No. 9/2017. Besides, the provisions would enhance efficacy of tax administration, tax collection and stimulate economic sectors such as manufacturing and small businesses.