Corporate - Tax credits and incentives

Last reviewed - 11 July 2023

Foreign tax credit

A foreign tax credit is available to Omani companies or establishments (proprietorships) that suffer foreign taxes on income that is also taxed in Oman. The credit is limited to the amount of tax incurred in Oman. The taxpayer is required to submit an application to the OTA to claim such credit.

Exempt activities

Effective for tax years beginning after 31 December 2016, tax exemptions are available only for industrial (manufacturing) activities. Exemptions are no longer available for mining, export of locally manufactured goods, operation of hotels and tourist villages, agriculture, fishing, or education.

In addition, new industrial exemptions are limited to the initial five-year period, with no renewal.

Existing tax exemptions are not impacted, but the changes will look to impact pending renewal applications.

Further, companies registered with the Special Economic Zones and Freezones in Oman may be able to avail 25 to 30 years of tax exemptions, subject to meeting certain conditions.

See Exempt income in the Income determination section for a description of other income items exempt from tax.