The tax year in Oman is the calendar year, 1 January to 31 December. Alternative tax years are allowed if approved and adhered to consistently.
For tax years beginning on or after 1 January 2020, an annual income tax return is required to be filed within 4 months following the end of the tax year or accounting period to which it relates. Previously, a provisional tax declaration was required to be filed within 3 months following the close of the previous tax year, and annual tax returns were filed within 6 months following the close of the previous tax year.
Companies with paid-up capital exceeding OMR 20,000 are required to submit audited financial statements with their annual tax return.
Extensions can be granted, although they apply only to the filing of the return and do not defer tax payment.
The estimated tax payment for the previous tax year must be made with the provisional tax declaration.
Any balance tax payable must be paid along with the filing of the annual tax return.
If any additional tax is assessed following the filing of the annual tax return, it must be paid within 1 month of the date of assessment.
In response to the COVID-19 pandemic, Oman announced certain tax relief measures, including:
- A tax payment installment facility, allowing taxpayers to enter into payment agreements with the tax authority without interest. The tax payment facility is extended from 2020 to 2021; and
- Taxpayers may pay their outstanding tax for the 2019 tax year in installments and may reschedule installment plans previously agreed to in relation to prior tax years, without additional tax. Taxpayers may postpone the payment of tax that is the subject of an objection until the objection is settled and may request an extension of the deadline to submit requested documentation/information in an assessment or appeal.
The relief measures are not applicable automatically, and the burden of proof is on the taxpayers to demonstrate that the delayed payment or the need for installment payments, etc. is due to the impact of COVID-19.
Tax returns must be mandatorily e-filed. Effective 11 February 2019, supporting documents (including accounts and registers) are also required to be e-filed along with the tax returns.