Al Elsa LLC Company operates business in Sultanate of Oman and has registered with Muscat Securities Market. According to the Income Tax Act RD No 9/2017 of Chapter IV, Article (112) the establishment must pay Capital gain tax of 15%.

The firm had disposed-off the following assets during the year ending 31st December 2019.

Permanent Buildings
A building was purchased for Omani Rial 250,000 on 30th June 2013. It has been sold for Omani Rial 315,000.

First Class Buildings
This building was sold for Omani Rial 99,000. The building had been purchased on 01st January 2018 for Omani Rial 75,000.

Aircraft
Aircraft was sold for Omani Rial 38,000. It had been purchased for Omani Rial 59,000 on 1st July 2013.

Equipment
The equipment was sold for Omani Rial 64,000. The equipment had been purchased for Omani Rial 120,000 on 1st July 2016.

Furniture
The furniture was sold for Omani Rial 10,000. The furniture had been purchased for Omani Rial 37,000 on 1st January 2018.

Required:

As a qualified accountant, calculate capital gains tax payable by Al Elsa LLC for the year ended 31st December 2019.

Discuss and elaborate on the provisions concerning to the disposal of capital assets according to Sultanate of Oman’s Income Tax Law.

Answer rating: 100% (QA)

CAPITAL GAINS TAX Capital gains are normally regarded as part of ordinary corporate ... View the full answer