Tax
Suspension Introduced to Boost Maritime Competitiveness

Muscat,
14 Oct (ONA) — Tax Authority has introduced a significant five-year
suspension of withholding tax on service contracts for vessels registered under
the Omani flag, marking a strategic initiative to strengthen the nation’s
maritime sector. The measure, effective from 1 September 2025, through 31 August
2030, represents a targeted approach to enhancing Oman’s position in the global
maritime industry.

According
to Hossam bin Hamad Al Maamari, Director of the Tax Policy Department, this
regulatory development forms part of the Authority’s comprehensive strategy to
improve the investment climate and support key economic sectors. “This
initiative directly addresses the needs of the maritime transport industry
while encouraging vessel registration under the Omani flag and attracting
specialized investments to Oman’s shipping sector,” Al Maamari stated.

The
tax relief applies specifically to service contracts performed aboard vessels
that have obtained Omani nationality and are formally registered with Oman’s
competent authorities. The suspension is expected to reduce operational burdens
for maritime companies while supporting the sector’s expanded contribution to
the national economy.

The
Tax Authority has encouraged all maritime sector enterprises to utilize this
initiative, anticipating that the measure will lower operational costs and
stimulate business expansion within Oman’s growing maritime industry.

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Ends/Khalid