Withholding Tax: Recent Developments

The Secretariat General for Taxation in Oman recently declared withholding tax to be applicable on all payments for services made to foreign persons without permanent establishments in Oman, irrespective of the place of performance.  This clarification materially alters the previous position held by the SGT following the recent tax reforms made pursuant to Sultani Decree 9/2017, where soon after it was clarified that services rendered wholly abroad by foreign persons would not be subject to withholding tax. 

What happened?

The Government of the Sultanate of Oman, represented by the Ministry of Finance, introduced significant changes to the Income Tax Law (promulgated by Sultani Decree 28/2009) in 2017, by promulgation of Sultani Decree 9/2017 (the Amendments).