Article 116 provides exemptions for the transport sector. Income earned by Omani individuals or companies from shipping activities is fully exempt. For foreign persons, income from shipping or air transport is exempt only if their home country provides reciprocal tax treatment to Omani entities (reciprocity principle). Reciprocity is verified based on the country of incorporation, effective management, or nationality. This provision facilitates international trade and aligns Oman with global aviation and maritime tax standards, ensuring Omani carriers are not disadvantaged in foreign jurisdictions while offering similar benefits at home.
Part 3 - Chargeability to Tax
Chapter 5 - Tax Exemption
Section 2 - Activities Exempted from Tax
Article 116
[GTL Notes: Shipping and Air Transport Exemptions]
Income accruing to any establishment owned by an Omani natural person or an Omani company from carrying on its activity in the field of shipping shall be exempted from tax;
Income accruing to any person, other than provided for in the foregoing paragraph, from carrying on its activity of shipping or air transport, shall be exempted from tax, provided that a similar treatment is accorded on a reciprocal basis in the country in which the juristic person is incorporated or in the country where the effective management and control are exercised on the person or in the country of which the natural person is a national.
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