Tax
rates reduced for Omani companies with foreign ownership
As
part of Oman's continuing efforts to liberalize taxation laws and to promote foreign
investment, recently the taxation law was amended. The major changes are
The
tax rate for all companies incorporated in Oman, irrespective of the percentage
of foreign ownership has been made uniform. The rate applicable is 12 % on taxable
profits in excess of RO 30,000. Previously, companies incorporated in Oman with
foreign ownership of more than 70% were subject to higher taxation (maximum 30%)
Permanent establishments in Oman of companies incorporated
in the other Gulf Co-operation Council (GCC) countries have also been made uniform
at 12 %. Earlier GCC companies wholly owned by GCC national engaged in certain
permitted activities were alone treated on par with Omani companies.
Further in line with the Government's increased focus on
the education and health care sectors, the tax laws now provide for a tax exemption
to income arising from university education, colleges, higher institutes, private
schools, kindergartens, training colleges or institutes and private hospitals.
The exemption is without any time limit.
The recent
amendment also exempts profits made by any company from the sale of securities
listed on the Muscat Securities Market from tax. Further in order to strengthen
the domestic capital market the Joint Investment Accounts (JIAs/Mutual Funds/Investment
Funds) either registered under the Capital Market laws or incorporated outside
Oman and trading in securities listed on the MSM, will also be exempt from tax.
