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May 15, 2026

Article 79 delegates the determination of rules for capital assets held under finance leases to the Executive Regulations. It mandates that these rules must ensure leased assets are treated in accounts according to International Accounting Standards (IAS) or similar standards approved by the Chairman of the Tax Authority. This provision allows Oman's tax law to keep pace with evolving financial lease structures, ensuring that the 'substance over form' principle applies so that entities effectively controlling an asset under a finance lease can claim appropriate capital allowances in line with global financial standards.

Part 3 - Chargeability to Tax

Chapter 3 - Depreciation of Capital Assets

Section 2 - Determination of Capital Assets and Expenses Related Thereto

Article 79

[GTL Notes: Rules for Capital Assets held under Finance Lease Rules]

Executive Regulation of this Law shall lay down the rules governing the determination of the expenditure, whether capital expenditure or otherwise, incurred in respect of the capital assets held under contracts of finance leases, provided they are treated in the accounts in the manner prescribed for such assets as per the International Accounting Standards or the other standards which are considered as similar as per the controls and procedures issued by a decision from the Chairman.