Procedural Requirements for Obtaining Income Tax Exemption Status

Article 51 (bis) of the Income Tax Law issued by Oman Sultani Decree No. 47/1981 (as amended) (“ITL”) lists the companies which are exempt from paying income tax. The procedural requirements for a company submitting an application requesting income tax exemption were originally set out in Oman Ministerial Decision No. 78/1997 but were repealed in 2005 by Oman Ministerial Decision No. 46/2005 (“MD 46 of 2005”). This article sets out the rules and procedures for exemption from corporate income tax and corporate profit tax in Oman as provided for by the ITL and MD 46 of 2005.

To be eligible to be granted income tax exemption status under Article 51 (bis) of the ITL:

1. the company must be incorporated in Oman as per the Commercial Companies Law or any other law;