Oman Wires It's all about Oman
“This tax evasion is affecting our ability to shore up revenues necessary for expenditure on public services,” the Muscat Municipality stated.
The municipality stated that all contracts/leases have to be registered with it along with an administrative charge of 5 per cent of the annual rental worth of the home.
Muscat Municipality has stated that some owners of residential buildings do not register the lease pacts. “The types of evasion contain a pact among the landlord and the tenant for a significantly reduced worth than actual or not signing a lease at all. This impacts the rights of each the parties.
“Some landlords do not even sign agreements in connivance with tenants while others undervalue the property to evade tax. It deprives the municipal coffers of thousands of rials every year.”
Muscat Municipality has stated that a contract enables home owners to claim late payment and get the residence vacated in the occasion of non-payment of rent.
“A registered contract helps in solving rent disputes and address rent hike issues. It protects the tenant from an unjustified eviction for six months.”
Meanwhile, Muscat Municipality has signed an agreement with the Oman Investment and Finance Company (OIFC) to tackle the issue of tax evasion. OIFC will gather info about home owners and tenants in the agreed locations who have not registered their contracts with the municipality.
Information Source: Muscat Daily
