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May 15, 2026

Article 81 addresses assets acquired by a person before they actually began using them for business purposes in Oman. It stipulates that the market value of the asset on the date it commenced being used for business must be used as the cost basis, if that market value is lower than the actual original acquisition cost. This prevents taxpayers from transferring old, depreciated personal or foreign assets into an Omani business at their historical cost to gain an unfair depreciation advantage, ensuring the tax allowance reflects the asset's current value to the business.

Part 3 - Chargeability to Tax

Chapter 3 - Depreciation of Capital Assets

Section 2 - Determination of Capital Assets and Expenses Related Thereto

Article 81

[GTL Notes: Market Value Substitution for Pre-Business Assets]

In respect of expenses incurred for the acquisition of any capital asset before the accounting period during which it commenced to be used for carrying on the business, the market value of the asset at the date on which it commenced to be used shall be taken into account, if the market value on the date of commencement of the business is less than the expenditure actually incurred in acquiring that asset.