Suspension of withholding tax on dividends and interest extended

The Capital Market Authority (CMA) has issued Circular 11/2022 announcing the extension of the suspension of collection of withholding tax on dividends of shares, returns on Sukuk and interests on bonds, which had ended on May 6, 2022.

The circular stipulates: “The Capital Market Authority has recently noticed the questions raised in the social media by investors and those interested in investing on the Muscat Stock Exchange on the fate of the decision to suspend the collection of withholding tax at 10 per cent of the dividends on shares, returns on Sukuk and interests on bonds, which ended on May 6, 2022.

“The CMA would like to clarify that this decision was abolished by a decision of the Council of Ministers as part of the economic stimulus plan and was extended to 2025. And, for the purposes of furnishing appropriate environment to achieve the Oman Vision 2040 as instructed by His Majesty Sultan Haitham bin Tarik, the CMA is in continuous communication with the concerned entities to properly address this matter and other related issues that would enhance the ability of the capital market in the Sultanate of Oman to grow and compete in attracting foreign capital to finance economic projects.”