GCC Indirect Tax Weekly Digest

Oman developments

Excise Tax scope and rates announced

In line with Article 11 of the Oman Excise Tax Law, the Ministry of Finance has published the Council Of Ministers’ Decision on the scope and rates of Excise Tax.

As expected, the following is the current list of Excise Goods and the respective rates of applicable Excise Tax (already included in the recently published Excise Tax Implementation Guide, and covered in the recent Deloitte Middle East Indirect Tax Alert on Oman Excise Tax):

SGT announcement: E-System for registering of excise tax ready

The electronic system for excise tax registration of taxpayers is ready as announced by the Secretariat General for Taxation (SGT).

SGT has prepared the system to manage registration and licenses, submission of tax return and suspension or payment of tax.

The law requires the registration by importers and producers of excise goods, those who release excise goods for consumption and holder of excise goods of which the due tax is unpaid, as well as those who are authorized by SGT to establish a taxable warehouse.

In case of non-compliance, the SGT has the authority to carry out inspections on taxpayers. In addition, impose penalties in case of any violation. The law stipulates a punishment of three years' imprisonment and a fine of RO 20,000 in case of tax evasion.

Businesses affected should continue to prepare for the introduction of Excise Tax on 15 June 2019 as a matter of urgency. Should you have any questions or need assistance in preparing for the forthcoming implementation and beyond, please contact a member of the Deloitte Oman Indirect Tax team or your local Deloitte contact for more information.

UAE FTA publications

Guide on professional standards for tax agents

The United Arab Emirates (UAE) Federal Tax Authority (FTA) has published a guide on professional standards for tax agents.

Tax agents in the UAE are natural persons who are given the authority to liaise with the FTA in relation to the tax affairs of another person.

The guide sets out the professional standards and code of ethics expected of tax agents, along with their roles and responsibilities under the UAE Value Added Tax (VAT) legislation. The guide notes that in the future, tax agents will be expected to provide evidence of continuing professional development (“CPD”) to the FTA as evidence of their continued ability to perform the role. Businesses who have appointed a tax agent, or are considering doing so, may wish to take note of the contents of the guide in order to ensure the tax agent they are dealing with is upholding the professional standards expected of them.

Details of the conditions for registering as a tax agent, and the process of doing so, can be found in the previously published Tax Agents and Tax Agencies user guide.

This digest is for information purposes only and should not be construed as advice. It does not necessarily cover every aspect of the topics with which it deals. You should not act upon the contents of this alert without receiving formal advice on your particular circumstances.