MUSCAT : In response to the frequently asked question ‘When should SMEs submit their tax returns?’, the Authority states: “The tax return shall be submitted within three months after the end of the fiscal year.

3% is imposed on SMEs that are not committed to submitting their financial accounts.”

SMEs must meet the following conditions:

• The Capital does not exceed RO 60,000
• The number of employees during the fiscal year should not exceed 25
• The annual income should not exceed RO 150,000
  
  Enterprises meeting these conditions, along with one of the following, are exempt from tax:
  
• Managed by the owner or a partner on a full-time basis
• Employ at least two Omani nationals

However, businesses with inactive commercial registers are required to submit an annual ‘zero return’ along with a letter of non-operation and a workers’ list report.

Can the taxpayer, who is subject to VAT, ask for an additional period to submit the return in case he did not submit it in the specific time?

The taxpayer has the right to request a grace period for filing the return for a period of two weeks only, provided that he undertakes to the Tax Compliance Department to submit the return within the specified time.

Tax Authority lists the following as some cases faced by taxpayers under tax compliance:

Corporate Income Tax: Companies subject to the 15 percent corporate income tax can submit their tax returns and accounts independently. However, they must include audited financial statements from accredited audit firms in Oman.

Authorization for Pledges: Companies can authorize individuals to make pledges on their behalf. An official letter from the company, including the authorized person’s name and ID card number, must be submitted to the Tax Authority.

Amendments to Returns: Returns may be amended in cases of error or omission if corrected before the tax assessment is issued, and within one month of discovering the mistake.

Additional FAQs on tax compliance:

VAT collection: Companies registered for VAT must collect tax from consumers. If a company fails to do so and does not record it in the invoice, it is responsible for the tax amounts.

Professional activities: Full-time audit firms and law firms are required to file tax returns along with audited financial accounts.

VAT registration certificate: A penalty is imposed on companies that do not display their VAT registration certificate in a prominent location, as required by tax legislation.

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