Oman’s tax authorities are expected to shortly commence the process of issuing Tax Cards for all corporate entities operating in the Sultanate, according to a Muscat-based tax advisory services expert.
Tax Cards have been mandatory for corporates under the amended Income Tax Law (ITL) promulgated last year. Following the gazetting, earlier this week, of the Executive Regulations clarifying certain provisions of the Income Tax Law, procedures for the roll-out of the Tax Card scheme are expected to be unveiled soon, said Alkesh Joshi (pictured), Tax Partner at EY Oman,
“The Tax Card provisions came into force from the second day of publication of the Executive Regulations in the official gazette. We understand the forms required to apply for the Tax Card are currently under preparation. Very soon, the forms and other administrative requirements for obtaining the Tax Card will be issued,” Joshi explained.
In comments to the Observer, the tax expert said the proposed Tax Card will be obligatory for all legal entities, including those operating as LLCs, SAOCs, SAOGs, branches of foreign companies, permanent establishments, and so on. Small and medium enterprises (SMEs) also fall under the ambit of the new provision, he noted.
The Tax Card, he said, will either take the form of a chip-based card or an electronic document bearing a Unique Identification Number. “The Tax Card will become a sort of identity for the corporate entities. It will carry the name of the legal entity, date of registration of the Tax Card, and so on. It will be valid for two years upon the payment of a certain fee, and must be renewed every two years.”
The Executive Regulations, published by the Ministry of Financial Affairs through Ministerial Decision (MD) 14/2019, also makes reference to a chip-based card. This is a move that would help the tax authorities maintain electronic records of tax payers, ascertain their status as active or non-active tax payers and so on.
Furthermore, with the Secretariat General for Taxation having transformed into a virtually paperless organisation, it would make logical sense for chip-based Tax Cards.
Applications for Tax Cards may be submitted via the Tax Department’s portal once the forms become available online, Joshi added.