- EY Oman Annual Tax Seminar explores the main tax developments in Oman and the wider region over the last 12 months.
EY Oman hosted its Annual Tax Seminar 2024 in Muscat helping businesses navigate the evolving tax landscape in the country and the MENA region. The tax and regulatory landscape in Oman and the wider MENA region continues to evolve alongside global fiscal developments.
The seminar had participation of around 180 C-suite executives and finance professionals from Oman-based companies as well as representatives of several multi-national corporations. EY regional tax leaders discussed how the future of tax is being reshaped and the growing significance of tax in the MENA region.
Areas of discussion included the Oman Tax developments, base erosion and profit shifting (BEPS) and what is expected from business to comply with transfer pricing and BEPS 2.0 rules. Environment, Social and Governance (ESG) and Sustainability tax development conversations leveraged the knowledge and practical experience of EY’s senior tax professionals to offer comprehensive insights. Updates on indirect taxes, e-invoicing and the ongoing digitalization of tax compliance by the Oman Tax Authority with a focus on the e-filing of returns on its portal.
In addition, the sessions explored the state of the country’s economy and the opportunities it presents to companies and investors, as well as international tax reforms and their impact on the local tax environment.
Taxation has emerged as an important revenue generator for Oman’s government, accounting for around 15% of the national GDP. In comparison, the largest contributor — the oil and gas sector — represents 70% of the GDP. Oman currently has three main tax streams in place — excise tax, value-added tax (VAT) and corporate tax, including withholding tax.
Ahmed Al-Esry, EY MENA Tax Leader, says:
“In line with its drive to adopt the latest technologies, the Oman Tax Authority is striving to digitalize taxation. This has resulted in a shift toward electronic interaction with taxpayers, paperless assessments, more thorough data analytics based on detailed information requests and shorter assessment timelines. Businesses will be expected to have more transparent record retention, which will enable them to engage with the tax authorities in a more meaningful way. Therefore, digital readiness will become crucial going forward.”
The seminar further examined regulatory updates and recent tax trends across the MENA region with a focus on the GCC, which affect Omani businesses operating in other jurisdictions. These included the implementation of corporate income tax (CIT) in the UAE and Bahrain, the introduction of e-invoicing in Saudi Arabia and major amendments to the tax law in Kuwait.
The rising importance of ESG agendas in connection with tax was highlighted, with a deeper look at potential incentives and carbon credits for companies that are pursuing environment- and climate-friendly strategies.
Alkesh Joshi, EY Oman Tax Leader and EY MENA Sustainability Tax Leader, says:
“The introduction of new carbon measures across the globe as far as goods movement is concerned will require products which are entering EU markets and other large trading countries to be below a certain threshold of carbon emissions. To create a level playing field, we anticipate that most of the GCC countries will look to introduce some form of a carbon emission taxation system, which will allow them to compensate for this. Energy and manufacturing companies must keep up to date with the latest developments in this space to give themselves a head start in preparing for this upcoming change.”
-ends-
About EY
EY exists to build a better working world, helping to create long-term value for clients, people and society and build trust in the capital markets.
Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate.
Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today.
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com.
The MENA practice of EY has been operating in the region since 1923. Over the past 100 years, we have grown to over 8,000 people united across 26 offices and 15 countries, sharing the same values and an unwavering commitment to quality. As an organization, we continue to develop outstanding leaders who deliver exceptional services to our clients and who contribute to our communities. We are proud of our accomplishments over the years, reaffirming our position as the largest and most established professional services organization in the region.
© 2024 EYGM Limited.
All Rights Reserved.
This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, legal or other professional advice. Please refer to your advisors for specific advice.
ey.com
This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.
