Muscat, Acting in response to the Sultanate’s government directives to curb the impacts of coronavirus (Covid-19) pandemic, the Tax Institution undertook a number of procedures to mitigate the toll of pandemic on the financial position of establishments governed by the tax system.

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

The procedures include the following:

  • In case disclosures cannot be submitted on the fixed dates, the disclosures can be submitted and their tax paid within a period not exceeding 3 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% tax stated in the Tax Law will be waived in accordance with terms to be agreed with the Tax Institution for this purpose in the event of delays being caused by Covid-19 circumstances.

·    A tax payer 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 implementation of government-imposed precautionary measures.

·    A tax payer 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 towards Covid-19) within the Taxation Year 2020—for taxable income—in accordance with the rules set in the Tax Law and its Executive Regulation. 

Source: Oman News Agency

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