How to File Withholding Tax Statement?

Every month taxpayer has to file withholding tax to pay tax charged on the following categories of income accruing in Oman: royalties, consideration for research and development, consideration for the use or the right to use computer software and management fees. Taxpayer who is the payer of the amount, must deduct tax from the gross amount paid or credited to the foreign person. Withholding tax has to be filed when there was actual payment during previous month.

You can file a withholding tax statement through the Portal. Only one pending withholding tax statement (statement that is not cancelled or finalized) is allowed per taxpayer, foreign person and month.

Entering Withholding Tax Statement

  1. Click on the Add new withholding tax button.
  2. Click on the Find link next to the Foreign Person field.
  3. In the list of foreign persons, find the correct one – fill in one or more search fields in the header and click To select the foreign person, click on its file number.

If the foreign person is not in the Withholding Foreign Person list, add them:

  1. Click on the Add new withholding foreign person button.
  2. Fill in the fields on the Withholding Foreign Person Details page.
  3. Click the Save button.

If you want to update the details of an existing foreign person, click on the Edit link for that foreign person.

If you want to remove a foreign person, click on the Remove link for that foreign person. A foreign person can be removed if it has not been used by any taxpayers in any statements.

  1. Select the month and year of the payment and click Add.
  2. On the New Withholding Tax page, enter the amount of the payment to the field corresponding to its nature. Note that upon entering amounts, a comma separates thousands and a period separates rials from baisas. The system adds commas automatically.

The system calculates the tax due amount automatically.

  1. Select the month and year of the payment and the month and year of credit from the dropdown lists. These are mandatory fields.
  2. Enter the details of the account in which the amount is credited.
  3. Add any other details to the Other Details field, if necessary. This field is mandatory in case you are entering a revised statement.
  4. Click on the Save button.

Withholding tax statement is saved.

If you wish to change something, click on the Edit button at the bottom of the page. Note that the statement can be changed only before it is submitted.

 

Adding Attachments to Withholding Tax Statement

It is possible to add attachments to the withholding tax statement. For example, to include the payment receipt. Attachments can be added only before submitting the statement.

  1. If you have just saved the return, stay on the same page.

If you have navigated away from the page, open the Withholding Tax page (steps in the previous chapter) and click on the View link in the end of the row of the return to which you want to add the attachments.

  1. Click on the Attachments tab.
  2. Click on the Add new attachment button.
  3. Enter the name of the document to the Name field.
  4. Click Browse to locate the file in your computer and select it for upload.
  5. Click on the Save and Close If you want to add another attachment as well, click Save and New.

 

To open or download an attachment, click on the document file name in the Attachments table.

To remove an attachment, click on the Remove link at the end of the row of this document and click Yes on the Confirmation popup.

 

Submitting Withholding Tax Statement

Once all information has been entered and saved and the necessary attachments added, the withholding tax statement can be submitted.

  1. Open the Withholding Tax page and click on the View link for the statement you want to submit.
  2. On the Withholding Tax page, click on the Submit button.
  3. Click the Yes button on the Confirmation pop-up.

The document is submitted and finalized. The document status is changed to "Finalized". You can click on the Claims & Payments link to see the claim in the Claims list.

In case you are entering a revised statement, it must be approved by the SGT before it is finalized. In this case, the status of the document is "Submitted".

 

Cancelling Withholding Tax Statement

In case a withholding tax statement has been entered by mistake, it can be cancelled. User can cancel a document if it is in the "Draft" or "Waiting Correction" status (before submitting).

  1. Open the Withholding Tax page and click on the View link for the statement you want to cancel.
  2. On the Withholding Tax page, click on the Cancel Document button.
  3. On the Cancel Withholding Tax page, enter a comment to the Comments box (mandatory) and click the Cancel Document button.

The document is cancelled. The document status is changed to "Cancelled".

 

Entering Revised Withholding Tax Statement

In case you have discovered a mistake in the statement submitted to SGT, it is possible to submit a revised return. In this case, the return must be approved by SGT.

  1. Open the Withholding Tax page and click on the View link for the in correct statement.
  2. Scroll to the bottom of the page and click on the Add Revised Withholding Tax button.
  3. Correct the amounts on the opened form, save and submit the statement as a regular statement.

As the statement must be approved by SGT, it is not automatically finalized but obtains the status "In Progress".

 

Correcting Withholding Tax Statement

In case a withholding tax statement has been entered as a revised statement, SGT might send it back for correcting some information. In this case, the withholding tax statement's status is changed to "Waiting Correction".

  1. Open the Withholding Tax page and click on the View link for the statement to be corrected.
  2. On the Withholding Tax Statement page, the reason for not approving the statement is given in a separate note.
  3. According to the reason, correct the statement – click the Edit button at the bottom of the page to change amounts or click the Attachments tab to add or change attachments.

Alternatively, you can cancel the document if you no longer wish to submit this statement to SGT.

  1. Once you have made the changes, save the document and submit it again.