Muscat: Businesses and commercial establishments in the Sultanate which completed their financial year on December 31, 2019, have been scrambling to file their provisional income tax returns by today’s (March 31) deadline set by Oman’s Tax Authority for the submission of their tax returns.
Hopes of a last-minute announcement of an extension of the deadline did not materialize on the eve of today’s deadline.
“Business entities are required to file their provisional income tax returns online within three months of the year-end. Accordingly, those having the year-end on December 31 are obliged to file their provisional returns by March 31, 2020,” said Davis Kallukaran, Managing Partner – Crowe Oman.
Importantly, late or incorrect filings may attract penalties. “The tax return has to include proof of payment from the bank. Non-compliance will attract a one per cent interest per month on the tax payable,” he said.
Additionally, a difference of more than 10 per cent between the income disclosed in the provisional return (PR) and the actual income disclosed in the final return will attract a penalty as well. The final return must be filed within six months of the end of the previous financial year, Kallukaran explained.
Businesses were hopeful of a grace period for tax filings, similar to gestures announced by other regulators amid countermeasures implemented by the government to prevent the spread of the novel coronavirus (COVID-19).
The Capital Market Authority (CMA), for example, had extended the deadline for publicly listed companies (SAOGs) to convene their Annual General Meetings (AGMs). The Ministry of Commerce and Industry announced a similar extension for closed joint stock companies (SAOCs). Likewise, the Central Bank of Oman (CBO) extended the mandatory requirement for the completion and submission of audited financials of companies coming under certain categories to June 30.