Beta Version

Website Last updated:

May 15, 2026

Article 38 addresses scenarios where the Omani Government, under a specific agreement, has the right to receive royalties in kind rather than in cash. For the purpose of determining the taxpayer's taxable income, the Law requires that an amount equal to the fair value of these in-kind royalties must be added back to the taxpayer's gross income. This addition must occur in the tax year during which the royalties were received, ensuring that the total value of resources extracted or exploited is accurately reflected in the taxpayer's financial assessment.

Part 3 - Chargeability to Tax

Chapter 1 - Taxable Income and Taxpayers

Section 1 - General Rules for Determination of Income

Article 38

[GTL Notes: Royalties Received in Kind]

Where pursuant to an agreement between the Government and the taxpayer, the Government has the right to receive royalties in kind, then for the purposes of determining the taxable income of that taxpayer, an amount equal to the value of such royalties shall be added to the gross income of the taxpayer for the tax year during which such royalties were received.