Oman’s Economic Stimulus plan approved set of Incentives related to taxes and fees

Muscat: The Economic_Stimulus plan approved a set of incentives related to taxes and fees. The incentives seek in general to revive the tourism sector in addition to protecting many institutions from facing tough time due to the temporary economic and financial effects.

In a statement issued MOE said the following;

1, Exemption from income tax from all companies that operates in economic diversification sectors with effect from January 2021, 1 until the end of 2022. This exemption is valid for a period of five years from the date of its registration in the Commercial Registry in accordance with the terms and conditions that will be announced by the Tax Authority.

2, Reducing the income tax rate from (15%) to (12%) for small and medium enterprises according to the classification of the Public Authority for Small and Medium Enterprises Development and similar institutions not registered with the Authority and registered with the Ministry of Commerce and Industry and Investment Promotion for the tax year 2020 and 2021.

3, Reducing the fees for environment licenses that will be renewed in 2021 by (50%) for the license validity period.

4, Reducing the rental value of lands in the Special Economic Zone of Duqum (SEZD) and in the Industrial zones of the Public Establishment for Industrial Estates (Madayn) by 25% until the end of 2022.

5, Exemption from tourism tax and municipality tax collected from tourist establishment until the end of 2021.

6, Postponing the payment of tourism tax and municipality tax collected from tourism establishments until the end of December 2021.

7 Exemption of hotel establishments from the income tax due for the tax years 2020 and 2021 , said in the statement MOE.