Tourism tax on franchised restaurants from Jan 1

Muscat: The Ministry of Tourism announced on Sunday that restaurants and cafes managed through franchise contracts, restaurants located on tourist lands and restaurants located within hotel establishments will be obligated to collect tourism tax of 4 per cent from all its customers, starting from January 1, 2020.

Based on the ministerial decision, the restaurants will deposit the money to the ministry on a quarterly basis in accordance with the rules stipulated in the decision. In the case of a delay, financial fines will be imposed in accordance with Article 7 of the same decision.

The Ministry indicated that details of classification criteria for classified restaurants can be found on the Ministry’s website.

Article 3 of the decision No 56/2019 states that restaurants and cafes catering to tourists shall hire a manager for daily management as per the qualifications determined by the ministry. The restaurants and cafes can seek for classification from the Ministry of Tourism by paying a licence fee of RO 200.

TOURISM FEE

Article 49 of the decision states that restaurants and cafes can apply for the ministry of tourism classification if they are situated within a hotel establishment or if they are located on a land meant for tourism purposes or if they are administered through franchise contracts.

This decision will come into force from the day following the publication in the official gazette after 90 days from the date of enforcement of this resolution.

The decision also states that hotels, restaurants and cafes under tourism classification shall transfer four per cent of the total fee paid by the customer to the Ministry of Tourism.

Oman Observer

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