about oman

The investor can obtain 100% ownership.
The role of the Investment Services Centre (ISC) in the Ministry: The ISC aims to develop the business environment and facilitate the establishment of various types of investment projects.
It is responsible for registering foreign investors and simplifying procedures for obtaining licenses, approvals and permits for international investors.

It shall not be permitted for competent bodies to revoke the approval, license, or permit issued for an investment project except by a reasoned decision after warning the foreign investor in writing of the offence committed, considering their response, and providing a period that does not exceed 30 (thirty) days from the date of warning to remove the reasons for the offence. In all cases the opinion of the Ministry of Commerce, Industry & Investment Promotion must be sought prior to revoking the approval, license, or permit. It shall not be permitted to confiscate any investment project except with a judicial decision, nor impound its assets, freeze them, or hold them in custody or under guardianship except with a judicial decision. It is not permitted to expropriate an investment project except for public benefit in accordance with the Law on Expropriation for Public Interest, and in return for fair compensation to be quantified at the time of expropriation. The foreign investor has the freedom to carry out all transfers relating to the investment project from/to outside Oman at any time. The investor may transfer the ownership of the investment project in whole or in part to another investor.

Through the Public Private Partnership Law, the government seeks to encourage investment and the initiatives of the private sector in improving the framework of public-private partnerships in Oman, which are found more common in the form of projects for independent energy and water as well as independent energy projects. The Ministry of Finance is responsible for preparing, evaluating, negotiating and tendering for partnership projects between the public and private sector, in consultation with the relevant ministry which will retain full responsibility for managing projects. In addition to that, in case of dispute, developers are provided with the means to appeal against decisions related to the tender process, granting the project or implementation of the project, which provides greater transparency. The Public Private Partnership Law grants investors the opportunity to submit the idea of a partnership project to the relevant authorities in the form of an initial feasibility study consistent with the Sultanate’s strategy and development plan so that it has an economic or social return. The respective authority may accept or reject the idea; however, if rejected, the decision must be justified. The details of submitting the application and other procedures will be defined by the laws and regulations in force. This article provides an opportunity for the public to propose economic ideas and initiatives that can benefit Oman and help achieve greater public-private partnership.

The new Bankruptcy Law covers the mechanisms, controls and procedures of restructuring, helping the debtor merchant exit from the state of financial and administrative distress to pay off debts in line with a restructuring plan. The law also makes clear the way creditors obtain their rights.

The Commercial Partnership Law seeks to simplify procedures and encourage local and foreign investment. It applies to commercial companies whose headquarters is in Oman or which carry out their main activity in the Sultanate. The law includes articles that keep pace with the current economic situation and regulate the establishment and work of various types of companies by simplifying procedures for investors through creating the appropriate environment, providing the protection for investors and the commercial companies in accordance with the relevant standards and procedures. In order to create a framework for greater investment flexibility, the law allows for the first time the establishment of a one-person company.

The Privatization Law is designed to implement governmental policies for the transfer of ownership or the management of a public project (governmental facilities and buildings) or state-owned companies, in whole or in part, to a person in order to: Promote investment and attract specialized expertise. Raise the efficiency of resource operation and develop the quality of services. Development of the capital market.

The Corporate Income Tax Law seeks to tax worldwide income of entities formed in Oman and the Oman-source income of branches and other forms of permanent establishments. The rate of income tax is uniform for all types of business entities, regardless of whether it is a corporate entity and/or whether it is registered or not. The income tax rate is 15% for all taxpayers other than Omani proprietorships (‘establishments’) and limited liability companies (LLCs) that fulfil the conditions of small and medium enterprises. For Omani proprietorships (‘establishments’) and LLCs that meet the following requirements: Registered capital does not exceed RO50,000 at the beginning of the tax year Gross income does not exceed RO100,000 for any tax year Average number of employees during the tax year does not exceed 15 Taxpayer activities do not include air/sea transport; extraction of natural resources; banking, insurance, or financial services; public utility concessions; or other activities to be decided by the Minister of Finance after approval by the Council of Ministers. A 3% tax rate is effective and coupled with a requirement for SME taxpayers to file income tax returns.

Special provisions are applicable to the taxation of income derived from the sale of petroleum. The tax rate specified for such companies is 55%. However, the tax rates are applied on income as determined by the individual Exploration and Production Sharing Agreement entered into between the government of Oman and the company engaged in the sale of petroleum. Under these Agreements, the government pays the company’s share of income tax from amounts withheld from the government’s share of production. Consequently, the income tax is not borne by the company.

There are no regional or local income taxes in Oman.