BREATHING SPACE FOR GCC STATES OVER VAT?

states are ready to implement value added tax on January 1, 2018,” Ashok Hariharan, partner and head of tax at KPMG Lower Gulf, told Times of Oman. KPMG Oman is advising the Sultanate’s government on preparing a draft law on Value Added Tax.

“As far as Oman is concerned, it is going to be a challenge to introduce VAT from January 1, 2018, given the relatively long legislative process prevailing in the Sultanate,” he added.

Hariharan said that the process in the Sultanate would take at least 12 months. New tax laws and amendments are discussed with several stakeholders, including the Majlis Al Shura, Majlis Al Dawla (State Council) and Oman Chamber of Commerce and Industry (OCCI).

It took 18 months to finalise the recently announced amendment in Income Tax Law.

The Ministry of Finance has to upgrade its information technology (IT) system in the tax department to deal with levying value added tax on companies.

Hariharan said that the intention of GCC states is to introduce value added tax on January 1, 2018.

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