Tax Authority relaxes deadline for filing of tax returns

Muscat: In a last-minute respite for Omani firms scrambling to file their tax return for 2019, the Tax Authority of the Sultanate announced a series of concessions as part of wider measures adopted by the government to contain the spread of COVID-19.

As reported by the Observer on Tuesday, businesses and commercial establishments that completed the financial year on December 31, 2019, are required to file their tax return by March 31, 2020 as stipulated by the Income Tax Law.
However, the deadline has been relaxed in a gesture that takes into account the current challenges posed by the pandemic, the Tax Authority said. It also announced a relaxation of compliance obligations and a waiver on penalties for late filings.
The new guidelines announced by the Tax Authority are as follows:
First: In the event that the tax returns are not submitted by the prescribed dates, they may be filed, and the tax amount paid, within a maximum period of three months from the deadline (March 31). Any fines and penalties for late submissions are waived.
Second: It is permissible to pay the tax in installments.  Companies are exempt from paying the penalty set at 1 per month of the amount of the unpaid amount) in accordance with the conditions agreed upon by the Tax Authority, provided the delay is attributable to conditions linked to the pandemic.

Third: The taxable entity may object to the assessment of the tax, its correction or amendment, or the conduct of the additional assessment, within (45) days from the date of its notification of the assessment.

However, in order to facilitate taxpayers who are unable to file an objection – due to the COVID-19 measures – during the aforementioned period, the objection will be accepted after the date if it is proven that the date of its submission coincides with the period of applying the precautionary measures, considering that that period They fall under emergency circumstances.

Fourth: In order to achieve the principle of tax justice and to give the opportunity for taxpayers to present their documents and clarifications that support their objections to the tax assessment, the taxable entity may request an additional period to submit the clarifications and documents required to consider the objections submitted by them.

However, in the event of approval of the required deadline, the time limit granted shall be considered a suspension period for the period set for the settlement of the objection.

Fifth: Donations (proven to be paid for the purposes of contributing to the COVID-19 campaign) are tax-exempt for fiscal 2020.

Oman Observer

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