In Oman, recent developments concern withholding tax, incentives for specialized zones, and excise tax on certain products.
Royal Decree 27/2019 was published 28 April 2019 with regard to the establishment of scholarly zones, scientific zones, and other specialized zones subject to the approval of the Council of Ministers. There are intentions to offer incentives for entities operating in these zones, such as exemption from tax for a five-year period (renewable twice for a period of five year each), import duty exemptions, waiver of minimum capital requirement, and benefits relating to usufruct of land. Such incentives are subject to licensing and other conditions. However, entities including banks, financial institutions, insurance, re-insurance, communications or land transport services companies are excluded from this regime. It is expected that establishment of such zones will happen in the near future.
Royal Decree No. 23/2019 published in the official gazette in March 2019, to allow for the introduction of excise tax in Oman 90 days after the date of publication (13 March 2019). Excise tax rules, therefore, are effective in Oman from 15 June 2019. The executive regulations under the excise tax regime have not yet been published (the regulations can be published within six months of 13 March 2019). The new measures do not specify which goods will be subject to excise tax or what will be the excise tax rate. According to media reports, it is expected that the following excise tax rates will apply:
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.