The tax authorities introduced tax incentives for companies listed on the Muscat Stock Exchange or the Promising Companies Market, and for LLCs converting to closed joint-stock companies.
Oman’s Tax Authority announced on the social media platform “X“ new tax incentives targeting businesses that list on the Muscat Stock Exchange or the Promising Companies Market, as well as companies converting from limited liability companies (LLCs) to closed joint-stock companies.
Incentive Program for the Capital Market
The program, aligned with Oman Vision 2040, is structured around three main paths:
Path 1 – Public Joint-Stock Companies
This path supports companies establishing or converting into public joint-stock companies with a market value of at least 10 million Omani rials.
Incentives for five years after listing on the Muscat Stock Exchange include:
- Refund of two-thirds of corporate income tax, reducing the effective tax rate to 5%.
- Exemption from additional tax on income tax instalments, provided the instalment period does not exceed six months from the tax due date.
Path 2 – Promising Companies Market
This path targets companies listed on the Promising Companies Market with a market value of at least 500,000 Omani rials.
Incentives for five years after listing include:
- Refund of two-thirds of corporate income tax, resulting in a 5% tax rate.
- Exemption from additional tax on income tax instalments, with a maximum instalment period of six months from the tax due date.
Path 3 – LLCs Converting to Closed Joint-Stock Companies
This path encourages limited liability companies with a market value of at least 500,000 Omani rials to convert into closed joint-stock companies.
Incentives for two years after conversion include:
- Refund of one-third of corporate income tax, reducing the tax rate to 10%.
- Exemption from additional tax on income tax instalments, with instalments allowed for up to six months from the tax due date.
The program aims to support business growth and enhance Oman’s capital market while providing financial relief to eligible companies during the initial period after listing or conversion.
