Tax Card system set for launch in Oman

Oman’s newly revamped Tax Authority will shortly begin implementing the long-anticipated Tax Card system in the Sultanate.

It follows an Executive Decision by Sultan bin Salim al Habsi, Head of the Tax Authority, announcing that the Tax System will be introduced with effect from July 1, 2020.

Further guidelines about application procedures are expected to be released shortly, according to tax experts.

The amended Income Tax Law promulgated by Royal Decree 9/2017 mandated the introduction of the Tax Card for all taxpayers in the Sultanate.  A unique tax identification number on the card shall be cited on all contracts, invoices, and official correspondence.

“The tax card number has to be mentioned on all contracts, invoices, and correspondence of the taxpayer,” said a tax expert, citing the provisions of the Income Tax Law.  “Ministries, government bodies, and state-owned enterprises are required to ensure that a copy of the tax card is obtained by them before dealing with any taxpayer.”

Furthermore, all documents relating to transactions by that person with the government entity should be accompanied by a copy of the tax card. The government entity is obliged to notify the tax authority of the non-compliance of this provision within the time to be stipulated in the Executive Regulations, the tax expert noted, adding that failure to comply with the provisions relating to the tax card will result in the imposition of a fine up to RO 5,000.