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May 15, 2026

Article 70 applies to foreign persons who operate multiple businesses through various permanent establishments (PEs) in Oman. It stipulates that if one PE incurs a loss, that loss can only be carried forward and deducted (per Article 69) after it has first been used to reduce the taxable income of any other PEs owned by the same foreign person in Oman. This ensures that the overall Omani operations of a foreign entity are assessed together for loss relief, preventing the entity from carrying forward losses in one branch while paying tax on profits in another.

Part 3 - Chargeability to Tax

Chapter 2 - Rules for Deduction from the Gross Income

Section 5 - Provisions Concerning Deduction and Carrying Forward of Losses

Article 70

[GTL Notes: Loss Utilisation for Permanent Establishments]

Where a foreign person carries on several businesses through permanent establishments, the loss, which is incurred in any tax year from carrying on any business, may be carried forward and deducted in accordance with the previous Article 69, only after reducing therefrom the taxable income of the other permanent establishments owned by that person.