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May 15, 2026

Article 62 addresses the treatment of business expenses incurred before the official commencement of operations. Such expenses are legally deemed to have been incurred on the first day the business starts. However, this treatment does not apply to pre-registration company expenses (governed by Article 63), capital expenditure subject to depreciation, or expenses incurred by a permanent establishment outside Oman prior to its local setup. This Article ensures that legitimate startup costs are captured for tax purposes in the first year of operation, while separating them from capital investment and foreign branch costs.

Part 3 - Chargeability to Tax

Chapter 2 - Rules for Deduction from the Gross Income

Section 3 - Provisions Concerning Expenses Before the Commencement of Business or Registration

Article 62

[GTL Notes: Pre-Commencement Business Expenses]

Expenses incurred for business purposes before the business commences shall be deemed to be incurred on the day on which the business commences.

The provisions of the foregoing Paragraph shall not apply to any of the expenses provided for in Article 63 of this Law, or to the capital expenditure entitled to depreciation under this Law, or in the case of a permanent establishment to the expenses incurred outside Oman before it was established.