Sultanate joins EU list of cooperative jurisdiction for tax purposes

Muscat: The European Union has decided in its meeting on Tuesday to include the Sultanate in the list of cooperative jurisdictions for tax purposes initiated by the EU in December 2017 to ramp up efforts aimed at curbing tax evasion, avoiding double taxation and fighting money-laundering.

The EU said in a statement that the inclusion of the Sultanate to the list was the result of legislative amendments which made possible for spontaneous exchange of information for tax purposes, and the completion of all procedures related to the activation of information exchange with the EU.

Within the framework of the Sultanate’s participation in the international community efforts aimed at boosting cooperation in taxation matters and identifying the best practises regarding global tax governance, the Sultanate joined the inclusive framework to tackle Base Erosion and Profit Shifting and the Global Forum on Transparency and Exchange of Information for Tax Purposes. Additionally, the Sultanate signed a number of multilateral conventions overseen by the Organisation for Economic Co-operation and Development (OECD) most significantly the Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting and the Convention on Mutual Administrative Assistance in Tax Matters, which were ratified by the Royal Decree No 43/2020 and Royal Decree No 34/2020 issued on March this year.

It is worth noting that the Royal Decree No 118/2020 issued in September 14, 2020 amending some provision of the Income Tax Law supports the Sultanate’s efforts to cooperate with the international community in the taxation matters as the amendment added a legislative tool which allows for the exchange of information with international parties concerned. — ONA