EU adds Oman to list of countries cooperating in the field of taxation

Muscat: The European Union (EU) added the Sultanate to the list of countries cooperating in the field of taxation at a meeting held on Tuesday. 

The decision follows on steps taken by the EU in December 2017 with a view to intensifying efforts aimed at combating tax evasion, double taxation and money laundering.

The EU explained in a statement that the Sultanate’s inclusion came as a result of legal amendments that paved the way for the automatic exchange of information in the field of taxation and the completion of all procedures needed to activate automaticity and reciprocity with the EU.

As part of its stance to share efforts of the international community aimed at upgrading cooperation in the field of taxation and finding the best practices in international tax governance, the Sultanate joined both the General Framework on Base Erosion and Profit Shifting and the Global Forum on Transparency and Exchange of Information for Tax.

The Sultanate also signed a set of multilateral agreements supervised by the Organisation for Economic Cooperation and Development (OECD), the most important of which is the Multinational Convention to Implement Tax Treaty Related to Measures to Prevent Base Erosion and Profit Shifting and the Convention on Mutual Administrative Assistance in Tax Matters with a view to streamlining mechanisms on the exchange of information and collection of tax, both of which were ratified by Royal Decree No. 34/2020 and Royal Decree No. 43/2020, issued in March 2020.

It is worth noting that Royal Decree No. 118/2020, issued on 14 September 2020, relates to the amendment of provisions of the Tax Law, which is a legal instrument that provides for the exchange of information with international parties of relevance. Last month, the Tax Authority also issued two decisions defining rules of automatic exchange of information and financial accounts and rules of reports of each country, separately.