Royal Decree 76/98 Approving the Establishment of the Youth Enterprise Development Fund SAOC and the Privileges Granted to It

We, Qaboos bin Said, the Sultan of Oman

after perusal of the Basic Statute of the State issued by Royal Decree 101/96,

the Commercial Companies Law 4/74 and its amendments,

the Corporate Income Tax Law issued by Royal Decree 47/81 and its amendments,

the Foreign Capital Investment Law issued by Royal Decree 102/94 and its amendments,

the System of Financial Support for the Private Sector in Some Economic and Service Fields issued by Royal Decree 17/97,

and Royal Decree 18/97 Establishing Oman Development Bank,

and in a desire to support projects aimed at encouraging Omani youth and developing the national economy,

and in pursuance of public interest,

have decreed as follows

Article I

The establishment of a closed Omani joint stock company named the Youth Enterprise Development Fund SAOC is hereby approved. Its constitutive contract and articles of association must be prepared in accordance with the provisions of the mentioned Commercial Companies Law.

Article II

The projects in which the fund contributes are hereby considered to be projects that are eligible for support and soft loans in accordance with the laws and regulations in force in this regard.

Article III

The fund is hereby exempt from corporate income tax for a period of ten years. It is permitted to extend the exemption for a similar period by a decision issued by the Financial Affairs and Energy Resources Council.

Article IV

Projects in which the fund contributes to their capital upon their establishment are hereby exempt from corporate income tax or from the profits tax on commercial and industrial establishments for a period of five years from the date of establishment or commencement of activity. It may be renewed for another five years, provided that the renewal is issued by a decision by the Financial Affairs and Energy Resources Council, and provided that the exemption is in accordance with the controls issued by a decision by the Minister Supervising the Ministry of Finance.

Article V

The fund is hereby exempt from the provisions of the Foreign Capital Investment Law issued by Royal Decree 102/94 and its amendments.

Article VI

This decree must be published in the Official Gazette, and comes into force from the date of its issuance.

Issued on: 19 Rajab 1419
Corresponding to: 8 November 1998

Qaboos bin Said
Sultan of Oman

Published in Official Gazette 635 issued on 15 November 1998.