Doing business in Oman

A tax and legal guide

Updated Autumn 2020

www.pwc.com/me
2 Doing Business in United Arab Emirates – a tax and legal
guide
Welcome to this guide

Oman, with its long history as a trading location and its oil based natural resources, has been a destination for
foreign investment for many years.

Like other countries in the region, efforts are underway to diversify the economy and government revenues away
from petroleum. These drivers will likely result in continued changes to company, investment and taxation laws.
We have seen new Commercial Companies Law (“CCL”) and Foreign Capital Investment Law (“FCIL”), which
makes significant amendments and much awaited changes aimed at improving business environment and
diversifying the economy.

Further, a Royal Decree in relation to the implementation of VAT has been issued and VAT is going to be
implemented in Oman from April 2021. Significant amendments to the Labour Laws, as well as Executive
Regulations to the new CCL, FCIL, VAT law are also expected in the near future.

Company Law aspects sit alongside other fundamental issues such as employment visas, accounting
requirements and taxation issues including customs when considering the establishment or changing of
businesses in the country.

In addition to above, and in line with the country’s vision of creating a diversified and competitive national
economy, several laws were recently introduced, to name a few:

● Public Private Partnership Law (PPP) – To stimulate efficiency and quality of public services and projects
that have an impact on the economic and social development of the country, by involving the private
sector in executing projects in partnership with the Government.

● Privatisation Law – To regulate public projects awarded to private sector companies.

● Bankruptcy Law – To regulate procedures relating to bankruptcy cases, in conjunction with provisions
introduced by the Commercial Companies Law relating to dissolution and liquidation.

● Mining Law – To provide a more robust framework for the mining industry and streamlining approval
processes.

This guide is intended to provide an introduction to the taxation and legal aspects of doing business in Oman,
particularly from the perspective of the items an inbound investor will have in mind.

I would also like to add that as we release this, the world is still continuing to deal with the ongoing COVID-19
crisis. This guide does not seek to address issues specifically relating to the business and economic impact of
the ongoing pandemic, however, information and updates on those can be found on our website here.

We hope you find the guide useful.

Darcy White
Partner | PwC Oman Tax Leader
 Contents
Welcome to the Oman “Doing Business Guide” 03
Introduction 05
Establishing a business in Oman 05
Taxation 08
Additional legal considerations 12
Key tax indicators in the Oman 14
bout PwC Middle East 16

Contacts 17

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Doing Business in Oman – a tax and legal guide 4