Oman: BEPS developments

Oct 26, 2017

In brief

Oman has joined the “Inclusive Framework on BEPS,” becoming the 103 rd country to join, the OECD announced on October 20. Multinational groups operating in Oman should monitor developments carefully in respect of any Oman tax rule changes due to this development.

In detail

The Inclusive Framework on BEPS brings together countries and jurisdictions to collaborate on implementing the OECD/G20 Base Erosion and Profit Shifting (BEPS) Package.

By joining the group, Oman has pledged to adopt minimum standards developed in 2015 by OECD and G20 nations, with input by other nations, in response to the base erosion profit shifting (BEPS) plan.

BEPS refers to tax planning strategies that are claimed to exploit gaps in tax rules to artificially shift profits to low or no-tax jurisdictions where there is little or no economic activity.

BEPS is of particular significance for developing countries that rely heavily on corporate income tax, especially from multinational enterprises.

The commitment means that Oman will adopt provisions to prevent tax treaty shopping, implement country-by-country reporting on multinationals and exchange country-by-country reports, limit benefits of any intellectual property or other preferential tax regimes established in Oman, and fully implement the mutual agreement procedure in its tax treaties with other countries to aid resolution of tax disputes. In return, Oman will be permitted to work alongside other BEPS inclusive framework countries on an equal footing to ensure widespread adoption of the BEPS minimum standards.

The takeaway

Multinational companies operating in Oman should carefully monitor local legislative and tax authority developments.

Contact us

Mark Schofield
Tax and Legal Services Leader, PwC Middle East
Tel: +971 (0)4 304 3100

Jochem Rossel
Middle East International Tax Leader, PwC Middle East
Tel: +971 4 304 3445

Neil Allmark
Tax Director, PwC Middle East
Tel: +971 4515 7180

Mohamed Serokh
PwC Tax Partner & Middle East Transfer Pricing Leader, PwC Middle East
Tel: +971 4 304 3956

Russell Aycock
Oman Tax Leader, PwC Middle East
Tel: +968 2455 9122

Omar Al Sharif
Oman Country Senior Partner
Tel: +968 2455 9118

Darcy White
Tax Partner, PwC Middle East
Tel: +968 2455 9154

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