Oman - Mark your calendars: Tax Updates and Deadlines for Q1 2025

2 January 2025 - As we embark on a new year, staying informed of the latest tax obligations and updates in Oman is essential to ensure your business remains compliant and avoid any potential penalties. Below you will find the critical deadlines and updates for the upcoming quarter, covering Corporate Income Tax (CIT), Value Added Tax (VAT), and Excise Tax.

Reorganization at the Oman Tax Authority

• We understand that OTA is considering internal reorganization of staff for enhancing efficiencies of the tax related process. Some of the changes suggested may include:
  • Formation of separate committee for Tax Objection for independently handling the Tax objection process to shift responsibilities for Tax Assessment both for Direct and Indirect taxes away from the same Tax Inspector.
  • Prior appointment to be obtained for in person meetings with the Tax Authorities.
  • State Audit role to become significant in reviewing selected completed Assessments.
• A formal announcement in this respect is still awaited.

Corporate Income Tax 

• Double Tax Treaties
  • Countries with which Oman has recently signed the Double Tax Treaties are:
    • Estonia 
    • Luxembourg
    • Russia
    • Egypt
    • Ireland
    • Qatar
    • Tanzania
• Action against non-compliant taxpayers*
  • The Tax Authority has conducted assessments on companies that did not file their tax returns for the tax year 2019. Taxpayers are advised to check the tax portal in this regard. To avoid any penalties and additional taxes, it is crucial for taxpayers to commit to submitting their annual income tax returns for the years following 2019 successively. Staying compliant will help prevent any potential consequences.

* Source: Oman Tax Authority official website.

• Important Deadlines that require attention:
  • Entities with year-end 30 September 2024 to file an annual return of income by 31 January 2025.

Value Added Tax and Excise Tax 

• Important Deadlines that require attention:31 January 2025
  • Tax stamps must be applied and activated on all excisable products entering the local Oman market for sale. 
• 30 January 2025
  • Submission of VAT and Excise Tax returns for the period 1 October to 31 December 2024 (i.e., Q4 2024)
  • Remitting any VAT/ Excise Tax payments due for Q4 2024.
  • Final opportunity to claim input VAT relating to the period 1 October to 31 December 2021 (i.e., Q4 2021) for VAT-registered entities. 

Revision of VAT returns submitted for Q4 2021, if necessary, to ensure any corrections are made within the applicable three-year window from the due date of original submission. (e.g., 30 January 2025 if the original return was filed on/before 30 January 2022). After this date, entities will be unable to revise the VAT returns voluntarily and may face higher penalties for any errors detected in assessments.