Oman

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Return to homepage  |  Last updated: 11 May, 2020

The rapid spread of the novel coronavirus (Covid-19), which has been declared a pandemic by the World Health Organization, is adversely affecting economies and businesses around the world. Governments are announcing relief measures to mitigate its economic impact and help individuals and businesses navigate these unprecedented times.

Click here to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.

• In addition to the above, on 23 March 2020, the CBO announced additional measures urging banks to identify the ‘most critical functions’, which need to be carried out without disruption, and provide suitable staff (and backup), both at the premises and working from home.  These functions, at a minimum, should include:
  • Electronic/digital payments 
  • Trade transactions         
  • Online services
  • Treasury operations
  • International payments/remittances  
  • Emergency loans
  • Processing of salary payments  
  • Government transactions
  • Cheque processing   
  • Call centers
  • ATM/CDM services 
  • Fraud/cyber risk monitoring services
• Remittance services provided by local banks should be at minimum cost in view of the closure of money exchanges, as per the directives of the Supreme Committee 
• Banks to waive charges levied on point of sale (POS) transactions
• Use of old cards to be enabled under prompt notification to customers wherever debit/credit cards could not be renewed, or renewed cards could not be delivered to customers
• Separately, the CBO has further extended the deadline for the completion and submission of audited financial statements/net worth statements for borrowers to 30 June 2020.
  

• The Omani customs authority has announced that where the importer is unable to obtain or produce the necessary authorizations (i.e., documents and certificates of the goods from the exporting country), the relevant goods will still be cleared.
• Further, the current requirement to obtain a guarantee for the non-submission of original legalized documentation has been waived until further notice.

Customs clearance

• Oman Customs have announced that where the importer is unable to obtain or produce the necessary authorizations (i.e., documents and certificates of the goods from the exporting Country), the relevant goods will still be cleared.
• In addition, the current requirement to obtain a guarantee for the non-submission of original legalized documents has been waived until further notice.

Other relief measures

• Postpone loan instalments/premiums for small and medium establishments, i.e. fees payable to Al Raffd Fund, for the next six months 
• Defer loan instalments/premiums payable to Oman Development Bank during the next six months  
• Grant rent exemption to factories in industrial cities for a period of three months 
• Exempt companies from Commercial Register renewal fees for the next three months 
• Car (automobile) sale agencies and finance companies to postpone instalments/premiums of cars for a period of three months.

Main sources of information:

• Oman Government measures to address COVID-19 
• Tax Flash: Tax relief measures announced by the Oman Tax Authority

Tax: Hariharan, Ashok - AHariharan@kpmg.com