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COVID-19: Measures taken to alleviate impact on taxpayers

1 Apr 2020

Acting in response to the Omani government’s directive to curb the impact of the pandemic, the Tax Institution undertook a number of procedures to mitigate the toll on the financial position of establishments governed by the tax system.

The procedures seek to assist tax payers affected by the pandemic and meet their obligations in a manner that spares them the penalties stated in the Income Tax Law.

The procedures

In case disclosures cannot be submitted on the fixed dates, the disclosures can be submitted and their tax paid within a period not exceeding three months from its date. In this case the prescribed delay fines and penalties shall be waived.

  • The tax can be paid in instalments, and the additional 1 per cent tax stated in the Tax Law will be waived in accordance with terms to be agreed with the Tax Institution in the event of delays being caused by COVID-19.
  • A taxpayer can object to the linkage or modification of tax or related procedures within 45 days from date of notification of such action. In case, the objection is received beyond the said period, it can still be accepted if it turns out that the belated objection coincides with the period of government-imposed precautionary measures.
  • A taxpayer may request an additional grace period for submitting clarifications and documents required for review of objections. If the additional grace period is approved, then it will be considered a period of suspension of the Objection Adjudication Date.

The procedures also include the deduction of donations (proved to have been paid to combat COVID-19) within the Taxation Year 2020 – for taxable income – in accordance with the rules set in the Tax Law and its Executive Regulation.

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