Tax Facilities for the Omani Maritime Sector

In a strategic step aimed at enhancing the competitiveness of the Omani maritime sector, the Tax Authority has announced the suspension of "Withholding Tax" on service contracts provided on board ships registered under the Omani flag, for a period of five years. Mr. Hussam Al-Mamari, Director of the Tax Policies Department at the Tax Authority, stated that this decision is part of the Tax Authority's continuous efforts to stimulate the investment environment and support vital economic sectors in line with the objectives of Oman Vision 2040.

He further clarified that these tax facilities directly target the maritime transport sector to encourage the registration of ships under the Omani flag, bolster the national maritime transport and services sector to support its role in the national economy, and attract quality investments to the maritime transport industry in the Sultanate of Oman.

The suspension will take effect from the first of September 2025 and will continue for five years until 31 August 2030. The exemption includes withholding tax due on service contracts provided on board ships that have acquired Omani nationality and are officially registered with the competent authorities in the Sultanate of Oman. In this context, the taxpayer is required to submit an application to the Tax Authority through the electronic portal (Income Tax Return Form No.18), indicating the value of the tax due on the total services provided on board ship. This application must be submitted, at the latest, on the fourteenth day after the end of the month in which the amount was due or credited to the account, whichever is earlier.