Beta Version

Website Last updated:

May 15, 2026

Article 118 provides a 5-year tax holiday for Omani establishments and companies engaged in the industrial sector, as defined by the GCC Unified Industrial Organization Law. This exemption applies to main industrial activities but excludes project execution (construction) contracts. The 5-year period begins from the date production starts. To qualify, taxpayers must adhere to conditions set by the Minister of Finance and the Council of Financial Affairs and Energy Resources. This incentive is a primary tool for industrial diversification, encouraging the establishment of manufacturing and production facilities within the Sultanate.

Part 3 - Chargeability to Tax

Chapter 5 - Tax Exemption

Section 2 - Activities Exempted from Tax

Article 118

[GTL Notes: Industrial Activity Exemptions]

Income that accrues to an establishment or Omani company from carrying on its main activity in the fields of industry in accordance with the Law for Unified Industrial Organization of Gulf Cooperation Council Countries with the exception of project execution contracts shall be exempted from tax:
Exemption from tax shall be for period of five years beginning from the date of commencement of production as per the terms, conditions and procedures determined by a decision issued from the Minister of Finance* upon approval of the Council of Financial Affairs and Energy Resources.