The European Union has decided to remove Oman from the ‘EU list of non-cooperative jurisdictions for tax purposes’
The decision was taken in a European Council meeting on October 6, where it was decided to add Anguilla and Barbados to the list and remove Cayman Islands and Oman, after having passed the necessary reforms to improve their tax policy framework.
The European Union clarified in its statement that removing Oman from the list came as a result of legislative amendments in the sultanate.
‘Oman was considered as compliant with all its commitments after it ratified the Organisation for Economic Cooperation and Development (OECD) Convention on Mutual Administrative Assistance in Tax Matters, enacted legislation to enable automatic exchange of information and took all the necessary steps to activate its exchange-of-information relationships with all the EU member states,’ the EU statement said.
The Royal Decree No 118/2020 on September 14, 2020, amending the provisions of the Income Tax Law came as a support for the sultanate’s efforts in cooperation with the international community in the tax field. ‘The Tax Authority also issued two decisions in September regarding the rules for automatic exchange of financial account information, and the reporting rules for each country,’ said the Government Communication Centre in a statement.
The EU list of non-cooperative jurisdictions for tax purposes is part of the EU’s external strategy for taxation and aims to contribute to ongoing efforts to promote good tax governance worldwide.
It lists non-EU jurisdictions that either have not engaged in a constructive dialogue with the EU on tax governance or have failed to deliver on their commitments to implement reforms.
The EU list of non-cooperative jurisdictions for tax purposes was established in December 2017. It has been revised several times.