Oman has recently joined the BEPS Inclusive Framework bringing the number of countries participating in the BEPS Project to 104. Oman is the second country after Kingdom of Saudi Arabia (“KSA”) in the Gulf Co-operation Council (“GCC”) region to sign the BEPS.
The list of the member countries (including Oman) from OECD can be found here.
The countries (including Oman) that are members of the BEPS Inclusive Framework agree to remove harmful tax provisions in their domestic tax regimes and commit to implement the following:
By joining BEPS Inclusive Framework on BEPS, Oman has committed to implement the four minimum standards of the BEPS Package relating to Actions 5,6,13 and 14 (as mentioned above). Furthermore, members of the Inclusive Framework agree to work together on an equal footing to develop further BEPS measures, commit to participate in peer reviews on BEPS measures' consistent implementation, and pay an annual fee to the OECD. The implementation of tax treaty related measures to prevent BEPS is covered by the multilateral instrument (Action 15) which has not been signed by Oman yet.
Some of the anticipated key impacts on Oman entities are as follows:
In the due course of time, Oman may issue legislative amendments highlighting the time lines in relation to compliances, the extent of legislative changes and the practical need to, prioritize the BEPS measures.
Further, it could be possible that the Oman tax authorities may seek to "enforce" the BEPS provisions even before formal implementation of legislation by the Sultanate of Oman. Thus, it is highly recommended that entities in Oman should start analyzing the impact of BEPS on their business without waiting for the formal legislation.
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