A fiscal representative in Oman, also known as a tax representative, can be a person or entity appointed to represent non-established businesses or individuals for tax purposes. Non-established refers to businesses or individuals that do not have a permanent presence or physical establishment in Oman. The fiscal representative is required when the non-established entity engages in business activities in Oman and becomes liable for taxes in the country. Our lawyers in Oman have legal expertise and may help with legal matters related to your business, as well as assist you in appointing a fiscal representative.
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What is a fiscal representative in Oman?
A fiscal representative in Oman can assist in navigating the complexities of tax laws and regulations in the country. The representative’s roles include helping businesses understand taxation laws, calculating the taxes they owe, and ensuring the timely filing of tax returns.
The fiscal representative must have received official approval from the Oman Tax Authority. This indicates that he/she meets the necessary qualifications and requirements to perform this role. The representative must reside in the country.
Non-established businesses or individuals will issue an official power of attorney document to appoint the tax representative. The appointment of a fiscal representative can be a necessary step for foreign businesses looking to set up a company in Oman.
Services offered by a fiscal representative in Oman
A fiscal representative in Oman provides various services related to tax compliance and representation. Here are some of the services typically offered by a fiscal representative:
- Helping in the submission of VAT returns;
- Acts as an intermediary between clients and the Federal Tax Authority (FTA) in Oman, handling communication and correspondence related to tax matters;
- Maintaining financial records on behalf of clients;
- VAT registration with FTA;
- Acting as the authorized representative of clients when interacting with the FTA;
- In the event of a tax audit conducted by the FTA, he/she responds to the tax authority on behalf of clients, providing the necessary information and documentation;
- Preparation of documentation needed by the FTA during tax audits.
These services are valuable in the company formation process in Oman and our team can assist you in all tax-related aspects.
VAT rates and registration in Oman
A fiscal representative in Oman will also handle the VAT registration. In Oman, for the year 2024, the standard VAT rate is 5% and is applied to the supply of all goods within Oman and imports. However, there are exemptions for certain categories, including healthcare and education-related goods. Additionally, exports, basic food items, and medicine supplies are zero-rated.
Non-resident businesses without a permanent establishment in Oman are required to register for VAT, regardless of their turnover.
Our lawyers in Oman can provide more details about VAT.
Statistics about taxes in Oman
If you are interested in setting up a company in Oman and discovering more details about how taxes are distributed in the country, here are a few relevant statistics:
- In December 2021, Oman’s tax revenue as a percentage of GDP was reported at 3.8%;
- Oman’s total tax revenue was reported at 3.305 billion U.S. dollars in December 2021;
- The total tax revenue was 2.687 billion U.S. dollars in December 2020, showing a significant increase in one year.
If you need a fiscal representative in Oman, please contact our team for assistance. We can also help in matters regarding immigration in Oman if you are interested.