Oman: Taxpayers cautioned about business transactions with unregistered companies, establishments
A notice cautioning taxpayers not to have business transactions with companies or establishments that do not hold a valid tax card in Oman
Taxpayers cautioned about business transactions with unregistered companies, establishment
Oman’s tax authority issued a “taxpayer specific” notice that cautions taxpayers not to have business transactions with companies or establishments (including permanent establishments of a foreign company) that do not hold a valid tax card in Oman.
- Taxpayers engaged in business transactions with companies and establishments in Oman need to obtain a copy of the tax card from each company and establishment.
- Taxpayers engaged in business transactions with non-residents need to obtain the following documents:
- A valid tax residency certificate issued by the non-resident’s tax authority (as duly attested by Ministry of Foreign Affairs or Omani embassy in the non-resident country).
- A no “permanent establishment” declaration certificate, duly signed and stamped by the non-resident
VAT guide for real estate sector
The tax authority released a value added tax (VAT) guide for the real estate sector providing guidance on the applicability of VAT to the real estate sector in Oman. It specifically clarifies:
- The VAT treatment in instances of a sale or lease of real estate owned by individuals
- The credit or refund eligibility of input tax incurred on construction costs
- The VAT registration obligation on a non-resident providing real estate-related services to a non-taxable person in Oman
- The VAT treatment of retention money or withheld payments
Read a September 2021 report prepared by the KPMG member firm in Oman
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