We, Qaboos bin Said, the Sultan of Oman
after perusal of Royal Decree 26/75 Issuing the Law Governing the Administrative Apparatus of the State and its amendments,
Royal Decree 65/77 Reducing Income Tax on Mixed Companies,
and Royal Decree 47/81 Issuing the Corporate Income Tax Law,
and in pursuance of public interest,
have decreed as follows
Article 1
With effect from the tax year whose balance sheet is closed on a date subsequent to the entry into force of this decree, income tax on mixed companies in which Omani citizens own a share in their capital is hereby determined in accordance with the following percentages and conditions:
1. Companies in which Omani citizens own more than 50% of the paid-up capital:
(a） The first thirty thousand Rial of net profit is exempt from tax.
(b） The next one hundred and seventy thousand Rial of net profit: 20%.
(c） Any excess of net profit: 25%.
2. Companies in which Omani citizens own between 35% and 50% of the paid-up capital:
(a） The first thirty thousand Rial of net profit is exempt from tax.
(b） The next one hundred and seventy thousand Rial of net profit: 25%.
(c） Any excess of net profit: 30%.
3. For companies in which Omani citizens own less than 35% of the paid-up capital, the rates provided in the Second Schedule attached to the mentioned Royal Decree 47/81 apply.
4. The provisions of the mentioned Royal Decree 65/77 and Royal Decree 47/81 continue to apply to mixed companies operating in the fields of agriculture, fisheries, industry, and mining.
Article 2
This decree must be published in the Official Gazette.
Issued on: 20 Shawwal 1407
Corresponding to: 16 June 1987
Qaboos bin Said
Sultan of Oman
Published in Official Gazette 362 issued on 1 July 1987.