Oman suspends withholding tax on Omani-flagged vessels to boost its maritime sector.
Oman’s Tax Authority has announced a five-year suspension of withholding tax on service contracts for vessels registered under the Omani flag, in a move aimed at boosting the country’s maritime sector.
The measure will be in effect from 1 September 2025 to 31 August 2030.
According to Hossam bin Hamad Al Maamari, Director of the Tax Policy Department, this regulatory development forms part of the Authority’s comprehensive strategy to improve the investment climate and support key economic sectors.
The tax relief specifically applies to service contracts performed aboard vessels with Omani nationality that are formally registered with the country’s authorities. The suspension is expected to ease operational costs for maritime companies and strengthen the sector’s contribution to the national economy.