Tax sops for ships under Omani flag to boost marine transport

Published: 08:10 AM,Oct 11,2025 | EDITED : 02:10 PM,Oct 11,2025

Muscat: The Tax Authority has announced the suspension of the imposition of withholding tax on service contracts provided on board ships that are registered under the Omani flag, for a period of 5 five years, starting from September 1, 2025

The incentives are aimed at encouraging ships flying the Omani flag, supporting the maritime transport sector and national maritime services, and stimulating investment in the maritime transport industry.

Ships acquiring Omani nationality, officially registered with the competent authority in the Sultanate of Oman, and bearing its national flag.

Ships registered under the Omani flag mean vessels acquiring Omani nationality, officially registered with the competent authority in the Sultanate of Oman, and bearing its national flag.

Tax to be suspended means withholding tax on service contracts provided on board ships that are registered under the Omani flag. The suspension period will continue from September 1, 2025, until August 31, 2030.

Taxpayers may benefit from the tax facilities by applying to the Tax Authority, including the data shown in Form No. (18) of Income Tax for Withholding Tax, indicating the tax due on the total amount of services provided on board a ship that is registered under the Omani flag, no later than the fourteenth (14) of the end of the month in which the amount was due to be paid or credited to the account, whichever is earlier.