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Taxes on employee salaries in OECD-member countries hit a 12-year low

SHARE The Covid-19 pandemic sparked the largest decrease in taxes on wages since the 2008 global financial crisis, according to a new report by the Organisation for Economic Co-operation and Development. Lower household incomes coupled with tax reforms linked to the pandemic are driving widespread declines in taxes on wages across the 37-member bloc, the OECD s Governments and central banks have provided more than $12 trillion in monetary and fiscal support to economies since the outbreak of the pandemic, which disrupted economic activity and tipped the world into one of the steepest recessions since the Great Depression. The decrease was derived for the most part from lower income taxes, linked in part to lower nominal average wages in 16 countries, and in part to policy changes

The UAE Cabinet decision to extend taxpayers deadline is a reprieve for businesses

SHARE The UAE Cabinet s decision to extend taxpayers deadline to appeal for a waiver or reduction in penalties imposed by the Federal Tax Authority is a reprieve for businesses, according to tax experts. Earlier procedures provided only 10 business days for a taxpayer to make an application for waiver to an FTA committee. This provision has now been modified to allow taxpayers 40 business days to submit their exemption or waiver request. This was a much-awaited change because 10 business days is not sufficient to prepare the application for waiver/exemption citing proper facts, grounds of appeal, supporting provisions and historical records Anurag Chaturvedi, managing partner, Chartered House Tax Consultancy

Oman implements 5% VAT on goods and services

SHARE Oman implemented a 5 per cent value added tax (VAT) on Friday, according to a statement by the Oman News Agency. This comes after a six-month transitional period for the application of the tax on most goods and services in addition to goods imported into the Sultanate, with some exceptions specified in the law, the statement added. The Oman government has expanded the list of goods subject to zero-rate VAT from 93 basic food commodities to 488. Food commodities subject to zero-rate VAT are vegetables, fruits, legumes, grains, dates, spices, oils, fish, red meat and poultry, among others, according to the statement.

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