We, Qaboos bin Said, the Sultan of Oman
after perusal of the Basic Statute of the State issued by Royal Decree 101/96,
Royal Decree 47/81 Issuing the Corporate Income Tax Law and its amendments,
and the Capital Market Law issued by Royal Decree 80/98,
and in pursuance of public interest,
have decreed as follows
Article I
The text of paragraph 3 of the second schedule attached to the mentioned Corporate Income Tax Law is hereby replaced with the following text:
3. The tax rates for Omani companies wholly owned by Omanis must be determined in accordance with the following:
– The first thirty thousand Rial of taxable income—Exempt.
– Any excess of taxable income—12%.
Article II
The text of paragraph 4 of the second schedule attached to the mentioned Corporate Income Tax Law is hereby replaced with the following text:
4. For a mixed Omani company:
(a) Public joint stock companies: The tax rates must be determined in accordance with paragraph 3 of this schedule.
(b) Other companies:
1. Companies in which Omanis own 51% or more of their capital: The tax rates must be determined in accordance with paragraph 3 of this schedule.
2. Companies in which Omanis own less than 51% of their capital: The tax rates must be determined as follows:
– The first thirty thousand Rial of taxable income—Exempt.
– The next one hundred thousand Rial of taxable income—15%.
– The next one hundred and fifty thousand Rial of taxable income—20%.
– Any excess of taxable income—25%.
Article III
A new paragraph 4bis is hereby added to the second schedule attached to the mentioned Corporate Income Tax Law, with the following text:
4bis. For Omani companies in which the share of non-Omanis reaches 100% of their capital: The tax rates must be determined in accordance with the first paragraph and paragraph 1 of this schedule.
Article IV
A new paragraph 4bis(1) is hereby added to the second schedule attached to the mentioned Corporate Income Tax Law, with the following text:
4bis(1). For investment funds established in accordance with the mentioned Capital Market Law: The tax rates specified in paragraph 3 of this schedule must be applied.
Article V
The phrase “the rates provided in the first paragraph and paragraph 1 of the second schedule attached to the Corporate Income Tax Law” is hereby replaced with the phrase “the second schedule attached to the Corporate Income Tax Law” wherever it occurs in the applicable laws and royal decrees.
Article VI
All that is contrary to this decree, or in conflict with its provisions, is hereby repealed.
Article VII
This decree must be published in the Official Gazette, and comes into force from the date of its publication, with the exception of articles I, II, III, and IV, which come into force from tax year 1999.
Issued on: 29 Dhu Al-Qa’dah 1419
Corresponding to: 17 March 1999
Qaboos bin Said
Sultan of Oman
Published in Official Gazette 644 issued on 3 April 1999.