Muscat: The government has decided to suspend the income tax on dividends and interest dividends amounting to 10 per cent, which was imposed after the issuance of the Income Tax Law issued by Royal Decree No 9/2017 for a period of three years from May 6, 2019, extendable.
Abdullah bin Salim al Salmi, executive president, Capital Market Authority (CMA), the decision is aimed at giving more incentives and additional facilities to attract more direct and indirect investment, and make the sultanate a magnet for global investment along with a vibrant securities market.
It shows the Sultanate’s keenness in opening-up the policy for attracting foreign investment, which will enable the private sector to play a greater role in development and policies. It may be noted that the government has been working on the Foreign Direct Investment Law (FDI) to regulate and encourage investments, with the rights of the investor being protected.
Through improvements to the infrastructure, providing capital to finance domestic and increasing job opportunities for Omanis, the FDI will benefit Oman’s economy as this initiative will revise the law to open the market to foreign investors through granting 100 percent ownership and a reduction in minimum capital requirements.
The law is expected to be enacted in 2019 as it is in the final stages of the legislative process.