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Income Tax on Companies, Commercial and Industrial Est.

Commercial companies, business & industrial establishments as well as investors need to have appropriate knowledge and advice about important elements which directly affect their decisions in different commercial, economical and investment fields, one of which is taxation.

Taxation laws are codified through Royal Decrees and subsequently promulgated Ministerial Decisions, which regulate different taxation matters whenever the need arises. Consequently, Royal Decree No. 47/81 relating to income tax on companies was followed by Royal Decree No. 77/89 pertaining to taxation on profits of commercial and industrial establishments. Several other Royal Decrees were also promulgated and which amended from time to time the provisions of the said two Royal Decrees. Recently, a new taxation law was promulgated in Royal Decree No: 28/2009, which come into effect as from 1 January 2010.

At the same time, there exists a number of Ministerial Decision, which established implementing regulations for the above mentioned Royal Decrees.

All the above mentioned Royal Decrees and Ministerial Decisions regulate many taxation matters such as tax assessment, tax rate, additional assessment, companies which are subject to such a tax, recovery of extra tax paid, head office expenses for foreign entities operating through a branch in Oman, board of directors remuneration other than managing directors, the nature of such amounts paid and incorporated into expenses, and many other issues of importance.

They also regulate objection procedure against taxation decisions before the Secretary General of Taxation as well as appeals against his decisions before the Taxation Committee at the Ministry of Finance, and the rules and prescribed dates set for final appeals to the Court. Knowledge of all these matters and particulars is necessary for all those who seek success of their business and investment projects. Our office includes a group of experts in all these matters who are capable to give professional legal advice and to represent clients in tax objections and appeals in order to assist in bringing about the contemplated outcome.

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