Oman Tax Authority announces a ‘Tax Liability Settlement Initiative’

Muscat: As part of its dedication to strengthen the relationship and partnership with taxpayers and support their business ventures, the Tax Authority recently announced as of January 2, 2024 the ‘Tax Liability Settlement Initiative’ in order to reduce the impact of tax liabilities on taxpayers of tax income and help them fulfill their tax obligations by decreasing the total amount owed.

As for, the Tax Authority invited taxpayers of tax income with outstanding tax liabilities to submit their settlement requests by email at [email protected] within 6 months of the announcement date for the application to be processed and reviewed based on a number of terms, including the following:

1. The application should be provided with documents that prove the taxpayer’s financial burden, such as:

• Bouncing cheques
• Financial issues related to debt payments
• Bank statements that prove the taxpayer’s financial solvency

2- All tax returns for the year 2020 and respectively the following years should have been submitted by the taxpayer.

3- Any requested taxes for settlement should be due before January 1st, 2020

4- Any requested taxes for settlement should not be disputed.

5- The taxpayer should be prepared to submit any required documents at the Tax Authority’s request to consider the application.

6- Applications with false information, or that do not comply with the requirements, or were submitted after January 30, 2024 will not be taken into consideration.

The initiative aims to offer a 50% discount on the taxpayer’s outstanding taxes with the possibility of installments over 3 years.

Based on the results of this initiative, the Tax Authority intends to develop future initiatives aimed at helping taxpayers fulfill their tax obligations and alleviate their financial burden, as well as offering other benefits such as tax exemptions, installment payment, and tax penalty exemptions that are within the scope of certain regulations.