Part 3 - Chargeability to Tax
Chapter 2 - Rules for Deduction from the Gross Income
Section 4 - Provisions Concerning Certain Categories of Expenses
Article 67
[GTL Notes: Deductibility of Head Office Expenses]
In determining the taxable income for any tax year for any permanent establishment, there may be deducted the expenses of the head office situated outside Oman, such as the expenses on technical consultants, on research and development or on data processing, general and administration costs and other similar or related expenses incurred by the head office and allocated or charged by the head office to the permanent establishment.
The expenses incurred by the person related to the owner of the permanent establishment and allocated or charged as expenses to the permanent establishment shall be treated as head office expenses under the provisions of the preceding paragraph.
For the purposes of this Article, the person is considered as related to the owner of the permanent establishment if one controls the other, or both are controlled by the same person pursuant to the Articles 132 and 133 of this Law.
No expenses may be deducted in any case under the provisions of this Article, except in cases and in accordance with the percentages and Rules specified in the Executive Regulation of the Law, subject to the provisions of Article 54 of this Law.