Doing Business in Oman - RSM International
Doing Business in Oman - RSM International
Doing Business in Oman - RSM International
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George Mathew & Co<br />
Correspondent firm <strong>in</strong> <strong>Oman</strong><br />
DOING BUSINESS IN OMAN | 1
2 | DOING BUSINESS IN OMAN
Forward<br />
The aim of this publication is to provide general <strong>in</strong>formation about <strong>Do<strong>in</strong>g</strong> bus<strong>in</strong>ess <strong>in</strong><br />
<strong>Oman</strong> <strong>in</strong> broad outl<strong>in</strong>e. All <strong>in</strong>formation is up to date as of February 2011. Users are<br />
requested to contact the local <strong>RSM</strong> Correspondent firm George Mathew & Co for further<br />
details and updates.<br />
<strong>RSM</strong> <strong>International</strong>: Global requirements, local advice<br />
<strong>RSM</strong> <strong>International</strong> is the 6th largest network of <strong>in</strong>dependent account<strong>in</strong>g and consult<strong>in</strong>g<br />
firms worldwide, with over 700 offices <strong>in</strong> 83 countries, and more than 32,500 people on<br />
hand to serve your needs.<br />
<strong>RSM</strong> <strong>International</strong> is a global network of <strong>in</strong>dependently owned and managed professional<br />
service firms, united by a common desire to provide the highest quality of services to their<br />
clients. We exist to make a positive difference to their futures. High standards, common<br />
work ethic and clear focus make our members valuable partners for a varied client base<br />
worldwide.<br />
About <strong>RSM</strong> Correspondent firm <strong>in</strong> <strong>Oman</strong><br />
George Mathew & Co. is the Correspondent firm of <strong>RSM</strong> <strong>International</strong> <strong>in</strong> <strong>Oman</strong>.<br />
George Mathew & Co. is a firm of Chartered Accountants operat<strong>in</strong>g <strong>in</strong> the Sultanate of<br />
<strong>Oman</strong> s<strong>in</strong>ce 1988. It is one of the few audit firms <strong>in</strong> the Sultanate accredited with the<br />
Capital Market Authority of <strong>Oman</strong> which entitles the firm to act as statutory auditors of<br />
public jo<strong>in</strong>t stock companies, <strong>in</strong>vestment funds, licensed companies operat<strong>in</strong>g <strong>in</strong> the<br />
securities market and <strong>in</strong>surance companies registered <strong>in</strong> the Sultanate of <strong>Oman</strong>.<br />
The firm provides services <strong>in</strong> audit, account<strong>in</strong>g, tax, consult<strong>in</strong>g and risk management<br />
services.<br />
DOING BUSINESS IN OMAN | 3
In a world of<br />
different cultures,<br />
it’s good to have<br />
advisors who are<br />
consistent<br />
everywhere.<br />
<strong>RSM</strong> <strong>International</strong> is sixth largest network of<br />
<strong>in</strong>dependent account<strong>in</strong>g and consult<strong>in</strong>g firms worldwide.<br />
<strong>RSM</strong> <strong>International</strong> is represented <strong>in</strong> 83 countries and<br />
br<strong>in</strong>gs together the talents of over 32,500 <strong>in</strong>dividuals.<br />
<strong>RSM</strong> member firms are driven by a common vision of<br />
provid<strong>in</strong>g high quality professional services to ambitious<br />
and grow<strong>in</strong>g organisations.<br />
4 | DOING BUSINESS IN OMAN
Page Chapter<br />
7 Chapter 1: General<br />
12 Chapter 2: Types of <strong>Bus<strong>in</strong>ess</strong> Entities<br />
22 Chapter 3: Foreign Exchange Controls<br />
24 Chapter 4: Taxation<br />
35 Chapter 5: Employment<br />
40 Chapter 6: Account<strong>in</strong>g<br />
41 Chapter 7: Intellectual Property Rights<br />
Contents<br />
42 Chapter 8: Asset Valuation<br />
44 Chapter 9: Invest<strong>in</strong>g <strong>in</strong> <strong>Oman</strong><br />
50 Chapter 10: List<strong>in</strong>g Rules<br />
54 Chapter 11: Relevant Websites or Further read<strong>in</strong>g<br />
56 Chapter 12: Contacts<br />
DOING BUSINESS IN OMAN | 5
Chapter 1:<br />
General<br />
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Chapter 1: General<br />
1.1 <strong>Oman</strong> – an <strong>in</strong>troduction<br />
<strong>Oman</strong>, officially the Sultanate of <strong>Oman</strong>, is an<br />
Arab country <strong>in</strong> southwest Asia on the<br />
southeast coast of the Arabian Pen<strong>in</strong>sula<br />
border<strong>in</strong>g the United Arab Emirates on the<br />
northwest, Saudi Arabia on the west and<br />
Yemen on the southwest. Muscat is the capital<br />
of the country.<br />
1.2 Geography<br />
The Sultanate of <strong>Oman</strong> occupies the South-<br />
Eastern corner of the Arabian Pen<strong>in</strong>sula. It has a coastal l<strong>in</strong>e extend<strong>in</strong>g almost 3165 kms<br />
from the Strait of Hormuz <strong>in</strong> the North to the borders of the Republic of Yemen,<br />
overlook<strong>in</strong>g three seas; the Arabian Gulf, <strong>Oman</strong> Sea and the Arabian Sea.<br />
The total area of the Sultanate of <strong>Oman</strong> is 309.5 thousand sq. kms and it is the third<br />
largest country <strong>in</strong> the Arabian Pen<strong>in</strong>sula.<br />
The Sultanate is composed of vary<strong>in</strong>g topographic areas consist<strong>in</strong>g of pla<strong>in</strong>s, wadis and<br />
mounta<strong>in</strong>s. The most important area is the pla<strong>in</strong>s overlook<strong>in</strong>g the <strong>Oman</strong> Sea and the<br />
Arabian Sea. There are several mounta<strong>in</strong> ranges, the most important of which are ‘Al<br />
Hajr’, extend<strong>in</strong>g <strong>in</strong> the form of an arch from Ras Musandam <strong>in</strong> the North to Ras Al-Hadd<br />
and Al Qara’ <strong>in</strong> the South Western corner of <strong>Oman</strong>. A major portion of the land area is<br />
sand and desert. There are several islands located <strong>in</strong> <strong>Oman</strong>’s waters, the largest of which<br />
is Masirah <strong>in</strong> the south-east, which is accessed by boat and plane.<br />
1.3 Climate<br />
The climate differs from one area to another; it is hot and humid <strong>in</strong> the coastal areas <strong>in</strong><br />
summer, hot and dry <strong>in</strong> the <strong>in</strong>terior with the exception of higher mounta<strong>in</strong>s, which enjoy a<br />
moderate climate throughout the year. Generally, the Sultanate has little and irregular<br />
ra<strong>in</strong>s. Heavy ra<strong>in</strong>s fall only some times, with the exception of Dhofar Region where heavy<br />
and regular ra<strong>in</strong>s fall between June and October.<br />
1.4 History<br />
<strong>Oman</strong> has a dist<strong>in</strong>ct history with a long tradition of entrepreneurship and <strong>in</strong>ternational<br />
trade. It has age old maritime traditions dat<strong>in</strong>g back to sea-go<strong>in</strong>g commerce which<br />
flourished between the 7th and the 15th century A.D when <strong>Oman</strong> dom<strong>in</strong>ated the sea<br />
routes extend<strong>in</strong>g as far as Africa to the south, Ch<strong>in</strong>a to the east and Europe to the west.<br />
DOING BUSINESS IN OMAN | 7
<strong>Oman</strong> comb<strong>in</strong>es the strong traditions of the Middle East with 21st century modernity. The<br />
rich historic culture of <strong>Oman</strong> and the hospitality and tolerance of the <strong>Oman</strong>i people attract<br />
visitors and foreign <strong>in</strong>vestors alike.<br />
1.5 Population<br />
Total population of <strong>Oman</strong> <strong>in</strong> 2009 (estimated) is about 3.17 million consist<strong>in</strong>g of 2.02<br />
million of nationals and 1.15 million of expatriates. The literacy rate is approximately 81%<br />
of total population. 54% of the population is <strong>in</strong> the age group of 15 to 64, 43% of the<br />
population is <strong>in</strong> the age group of 0 to 14 and 3 % of the population are <strong>in</strong> the age group of<br />
above 65 years.<br />
1.6 Transportation<br />
Roads and rails<br />
Roads are an important mode of transportation <strong>in</strong> <strong>Oman</strong>. Major cities have well paved<br />
roads, <strong>in</strong>terl<strong>in</strong>ked with fly-overs, highways and express-ways. A national railway network<br />
is under implementation.<br />
Airports<br />
The country has two airports, one at Muscat which is an <strong>in</strong>ternational airport and another<br />
at Salalah. Four new airports are under developmental stage.<br />
Mar<strong>in</strong>es<br />
M<strong>in</strong>a Sultan Qaboos, Muscat’s ma<strong>in</strong> port, is a trad<strong>in</strong>g hub between the Persian Gulf, the<br />
Indian subcont<strong>in</strong>ent and the Far East. Salalah port and Sohar port are also the major<br />
ports of the country.<br />
1.7 Telecommunication<br />
The telecommunication services <strong>in</strong> <strong>Oman</strong> are well organised. The country has facilities for<br />
fix l<strong>in</strong>e telephones, mobile telephones and <strong>in</strong>ternet services. <strong>Oman</strong> has roam<strong>in</strong>g facilities<br />
<strong>in</strong> most of the countries of the world for its mobile network. The telecommunication sector<br />
<strong>in</strong> <strong>Oman</strong> is liberalised and the sector is served by different operators.<br />
1.8 Language<br />
The official language is Arabic but English is also widely used.<br />
1.9 Weights and measures<br />
For weights and measures, the metric system is used.<br />
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1.10 Government<br />
<strong>Oman</strong> is an absolute monarchy and His Majesty Sultan Qaboos B<strong>in</strong> Said is the Head of<br />
the State and ruler of the country from 1970 onwards when he ascended to the throne.<br />
“The Basic Law” of the state promulgated on 6th November, 1996 lays down the legal<br />
frame work of reference, govern<strong>in</strong>g the functions of the different authorities and<br />
separat<strong>in</strong>g their powers.<br />
The Council of M<strong>in</strong>isters assists the Sultan <strong>in</strong> draw<strong>in</strong>g up and implement<strong>in</strong>g the general<br />
state policy. The Council submits recommendations to the Sultan on economic, political,<br />
social, executive and adm<strong>in</strong>istrative matters.<br />
<strong>Oman</strong> has a bicameral legislature jo<strong>in</strong>tly referred to as Majlis Al <strong>Oman</strong> (Council of <strong>Oman</strong>).<br />
It comprises two chambers viz., Majlis Al Dawla (Council of State) and Majlis Al Shura<br />
(Consultative Council). The members of the Majlis Al Dawla are appo<strong>in</strong>ted by Royal<br />
Decrees. Majlis Al Shura is an elected body. The civil adm<strong>in</strong>istration is managed through<br />
local municipal bodies.<br />
<strong>Oman</strong>’s judicial system is a three tier legal system, with the Court of First Instance,<br />
Appellate courts and the Supreme Court. The courts have jurisdiction over all civil,<br />
crim<strong>in</strong>al, commercial, labour, tax and rent matters.<br />
1.11 Economy<br />
The economy is highly dependent on the country’s oil resources. Oil and natural gas are<br />
the ma<strong>in</strong> products of exports.<br />
Marble, limestone, gypsum and chromium are the other major natural resources of the<br />
country. Petroleum, agriculture and fish<strong>in</strong>g are the major <strong>in</strong>dustries of the country.<br />
The government is diversify<strong>in</strong>g the economy and is seek<strong>in</strong>g foreign <strong>in</strong>vestment, especially<br />
<strong>in</strong> <strong>in</strong>formation technology, tourism, water, electricity and higher education.<br />
Aga<strong>in</strong>st the backdrop of the global economic situation, the Government of <strong>Oman</strong> is<br />
committed to public spend<strong>in</strong>g and all the planned projects are go<strong>in</strong>g ahead as scheduled.<br />
A number of large <strong>in</strong>frastructure and developmental projects are now under plann<strong>in</strong>g,<br />
implementation or construction stage. These <strong>in</strong>clude new sea ports, airports, roads,<br />
national railway network, <strong>in</strong>dustrial zones and special economic zones.<br />
The Gross Domestic Product (GDP) at current prices is RO. 20.53 billion (US$ 53.395<br />
billion).<br />
The local currency is Rial <strong>Oman</strong>i (RO). The Rial <strong>Oman</strong>i is freely convertible and is pegged<br />
to the US$ at a fixed parity. 1 RO is equal to US$ 2.60.<br />
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1.12 General <strong>in</strong>formation<br />
Time difference<br />
The local time is ahead of Greenwich Mean Time by 4 hours.<br />
National day<br />
The country observes the National Day on 18th November of each year.<br />
Work days<br />
The Government offices work from Saturday to Wednesday. Banks work from Sunday to<br />
Thursday. Private sector organisations work from Saturday to Wednesday with Thursday<br />
generally be<strong>in</strong>g a half work<strong>in</strong>g day.<br />
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Chapter 2:<br />
Types of <strong>Bus<strong>in</strong>ess</strong> Entities<br />
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Chapter 2: Types of <strong>Bus<strong>in</strong>ess</strong> Entities<br />
2.1 Commercial laws – legal framework<br />
The bus<strong>in</strong>ess activities <strong>in</strong> <strong>Oman</strong> are ma<strong>in</strong>ly governed by the follow<strong>in</strong>g laws.<br />
The commercial companies law<br />
The Commercial Companies Law (Royal Decree No. 4/1974) is the controll<strong>in</strong>g law<br />
through which bus<strong>in</strong>ess may be conducted <strong>in</strong> <strong>Oman</strong>.<br />
The commercial law<br />
The Commercial Law (Royal Decree No. 55/90) provides for the regulation of commercial<br />
activities, <strong>in</strong>clud<strong>in</strong>g commercial obligations and contracts, commercial <strong>in</strong>struments and<br />
bankruptcy related matters.<br />
Commercial registration law<br />
Commercial Registration Law (Royal Decree No. 3/74) requires all bus<strong>in</strong>ess to be<br />
registered at the M<strong>in</strong>istry of Commerce and Industry. The M<strong>in</strong>istry allots a Commercial<br />
Registration number to every applicant, which is to be quoted by all bus<strong>in</strong>ess entities on<br />
all its official documents. The Commercial Register can be accessed by the public.<br />
Foreign capital <strong>in</strong>vestment law<br />
All non-<strong>Oman</strong>is, whether natural or juristic persons, shall not conduct any bus<strong>in</strong>ess or<br />
participate <strong>in</strong> an <strong>Oman</strong>i company without a licence issued from the M<strong>in</strong>istry of Commerce<br />
and Industry <strong>in</strong> accordance with the provisions of the Foreign Capital Investment law.<br />
2.2 Types of bus<strong>in</strong>ess entities<br />
The various types of entities under which a bus<strong>in</strong>ess can be established and conducted <strong>in</strong><br />
<strong>Oman</strong> are given below:<br />
General jo<strong>in</strong>t stock company – (SAOG)<br />
These are the companies whose m<strong>in</strong>imum 40% shares are issued to the public. The<br />
m<strong>in</strong>imum capital requirement is RO. 2 million for sett<strong>in</strong>g up a SAOG (Société Anonyme<br />
<strong>Oman</strong>aise Générale) company. The promoters can have a maximum sharehold<strong>in</strong>g of<br />
60%. M<strong>in</strong>imum number of shareholders <strong>in</strong> SAOG companies is three with no maximum<br />
limit. SAOG companies are managed by a Board of Directors, which is elected by the<br />
shareholders. Annual shareholders meet<strong>in</strong>g should be held with<strong>in</strong> three months of<br />
f<strong>in</strong>ancial year end. SAOG companies are required by law to withhold 10% of their net<br />
profits after tax as legal reserve to the extent of one third of its share capital.<br />
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Closely held jo<strong>in</strong>t stock company - (SAOC)<br />
These are companies which are closely held and the shares are not issued to public. The<br />
m<strong>in</strong>imum capital requirement of an SAOC (Société Anonyme <strong>Oman</strong>aise Closed) company<br />
is RO. 0.5 million and the m<strong>in</strong>imum number of shareholders is three with no maximum<br />
limit. SAOC companies are managed by a Board of Directors, which is elected by the<br />
shareholders. Annual shareholders meet<strong>in</strong>g should be held with<strong>in</strong> three months of<br />
f<strong>in</strong>ancial year end. SAOC companies are required by law to withhold 10% of their net<br />
profits after tax as legal reserve to the extent of one third of its share capital.<br />
Limited liability company (LLC)<br />
A Limited Liability Company (LLC) is a commercial company with a fixed capital divided<br />
<strong>in</strong>to equal shares. The m<strong>in</strong>imum capital required is RO. 20,000. LLC can be formed with<br />
two or more natural or juristic persons. The number of partners of the LLC must not<br />
exceed forty. LLC companies are managed by managers (<strong>in</strong>dividuals). Annual<br />
shareholders meet<strong>in</strong>g should be held with<strong>in</strong> six months of f<strong>in</strong>ancial year end. LLC<br />
companies are required by law to withhold 10% of their net profits after tax as legal<br />
reserve to extent of one third of its share capital.<br />
Limited partnership<br />
The Limited Partnership is a commercial company which comprises of two categories of<br />
partners: one or more general partners who are jo<strong>in</strong>tly and severally liable for the Limited<br />
Partnership’s debts to the full extent of their property and one or more limited partners,<br />
whose liability for the partnership’s debts are limited to the amount of their contribution to<br />
the partnership capital, provided such amount has been stated <strong>in</strong> the Limited<br />
Partnership’s Memorandum of Association. The m<strong>in</strong>imum capital required is RO. 3,000.<br />
The limited partners do not participate <strong>in</strong> the management and their name is not used as<br />
part of the partnership’s name.<br />
General partnership<br />
A General Partnership is formed by two or more natural or juristic persons and which aims<br />
at practis<strong>in</strong>g bus<strong>in</strong>esses under a certa<strong>in</strong> trade name. A partnership agreement must be<br />
registered with the M<strong>in</strong>istry of Commerce & Industry. The m<strong>in</strong>imum capital required is RO.<br />
3,000. The partners of a General Partnership are jo<strong>in</strong>tly and severally liable for the<br />
General Partnership’s debts to the full extent of their property.<br />
Jo<strong>in</strong>t venture<br />
A jo<strong>in</strong>t venture is formed by two or more juristic or natural persons establish<strong>in</strong>g a legal<br />
relationship between its members without affect<strong>in</strong>g third parties. The jo<strong>in</strong>t venture must<br />
not have a name of its own and its existence must not be raised as a defence aga<strong>in</strong>st<br />
claims made by third parties. It is not registered <strong>in</strong> the Commercial Register. However, it<br />
is considered a separate entity for tax purposes. Jo<strong>in</strong>t venture is an un<strong>in</strong>corporated entity<br />
which has no legal personality.<br />
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Hold<strong>in</strong>g company<br />
The hold<strong>in</strong>g company is a Jo<strong>in</strong>t Stock Company or a Limited Liability Company which<br />
f<strong>in</strong>ancially and adm<strong>in</strong>istratively controls one or more other companies which become<br />
subsidiary to such company by means of its hold<strong>in</strong>g at least 51% of such subsidiary<br />
company or companies whether they are Jo<strong>in</strong>t Stock Companies or Limited Liability<br />
Companies. The capital of a hold<strong>in</strong>g company shall not be less than RO. 2 million and a<br />
hold<strong>in</strong>g company shall neither hold shares of General or Limited Partnership companies<br />
nor shall it hold any shares <strong>in</strong> other hold<strong>in</strong>g companies.<br />
Sole proprietorship<br />
A sole proprietorship is a form of bus<strong>in</strong>ess which can be carried out by <strong>Oman</strong>i nationals or<br />
by GCC nationals pursu<strong>in</strong>g certa<strong>in</strong> economic activities. The m<strong>in</strong>imum capital requirement<br />
to form a sole proprietorship is RO. 3,000. The proprietor is personally liable for debts to<br />
the full extent of his assets.<br />
Branch of foreign company<br />
A foreign company can set up a branch office <strong>in</strong> <strong>Oman</strong> if it has a contract with the<br />
Government or Government owned organisations. Bank<strong>in</strong>g <strong>in</strong>stitutions and <strong>in</strong>surance<br />
companies are licensed to operate as branch and certa<strong>in</strong> professional services<br />
companies also may be permitted to set up branch offices. Branches are permitted only<br />
when their head office has been <strong>in</strong> operation for a m<strong>in</strong>imum period of 10 years. The head<br />
office is required to submit a guarantee for the operations of the branch.<br />
Commercial representative office<br />
Foreign companies are permitted to have a legal presence <strong>in</strong> <strong>Oman</strong> for the purpose of<br />
conduct<strong>in</strong>g market research, general advertis<strong>in</strong>g, market<strong>in</strong>g and promotional activities and<br />
liaison with commercial entities <strong>in</strong> <strong>Oman</strong>. The Representative Office cannot undertake<br />
any commercial activities except import<strong>in</strong>g samples for promotional purposes and can<br />
only be established by companies that have a head office and at least three branches <strong>in</strong><br />
other countries.<br />
Commercial agent<br />
A Commercial Agent is appo<strong>in</strong>ted by foreign bus<strong>in</strong>esses to export goods and services to<br />
<strong>Oman</strong>. All agencies must be registered with the M<strong>in</strong>istry of Commerce & Industry. Non<br />
exclusive agencies are allowed even though there is no bar for imports through suppliers<br />
other than the official agents.<br />
14 | DOING BUSINESS IN OMAN
2.3 Foreign <strong>in</strong>vestment entities<br />
Foreign <strong>in</strong>vestments through equity sharehold<strong>in</strong>g are allowed <strong>in</strong> the follow<strong>in</strong>g types of<br />
legal entities:<br />
Jo<strong>in</strong>t stock companies<br />
Foreign equity participation up to 100% of the company’s capital is permitted for projects<br />
which contribute to the development of the national economy, provided the project’s<br />
capital is not less than RO. 500,000. The company will need Foreign Capital Investment<br />
Law licence, Commercial Registration and <strong>Oman</strong> Chamber of Commerce and Industry<br />
registration.<br />
Limited liability companies<br />
Foreign equity participation up to 70% of the company’s capital is permitted if approved by<br />
the M<strong>in</strong>istry of Commerce and Industry provided the m<strong>in</strong>imum share capital is RO.<br />
150,000. Foreign equity participation up to 100% of the company’s capital is permitted for<br />
projects which contribute to the development of the national economy, provided the<br />
capital of the company is a m<strong>in</strong>imum of RO. 500,000. The company will need Foreign<br />
Capital Investment Law licence, Commercial Registration and <strong>Oman</strong> Chamber of<br />
Commerce and Industry registration.<br />
Branch office<br />
Foreign companies can setup branch offices for execut<strong>in</strong>g Government contracts or for<br />
bus<strong>in</strong>esses declared necessary for <strong>Oman</strong> by the Council of M<strong>in</strong>isters.<br />
A Commercial Registration and <strong>Oman</strong> Chamber of Commerce and Industry registration<br />
are necessary and sponsorship by <strong>Oman</strong>i agents may be required <strong>in</strong> certa<strong>in</strong><br />
circumstances.<br />
Representative office<br />
Foreign companies can operate <strong>in</strong> the Sultanate through its representative office.<br />
Registration with M<strong>in</strong>istry of Commerce and Industry and <strong>Oman</strong> Chamber of Commerce<br />
and Industry are required to operate the office <strong>in</strong> the Sultanate. Activities which<br />
representative office can perform are <strong>in</strong> trade, <strong>in</strong>dustry and services sector.<br />
Agencies<br />
Foreign companies can operate <strong>in</strong> the Sultanate through its Agencies. Registration with<br />
M<strong>in</strong>istry of Commerce and Industry and <strong>Oman</strong> Chamber of Commerce and Industry are<br />
required to operate the office <strong>in</strong> the Sultanate. Agency agreements should be registered<br />
<strong>in</strong> the Register of Agents and Commercial Agencies. Activities which agencies can<br />
perform are ma<strong>in</strong>ly whole sale trade and export of goods.<br />
DOING BUSINESS IN OMAN | 15
2.4 Audit requirements<br />
The audit<strong>in</strong>g profession <strong>in</strong> <strong>Oman</strong> is regulated by the M<strong>in</strong>istry of Commerce and Industry.<br />
Only audit firms registered with the M<strong>in</strong>istry of Commerce and Industry are permitted to<br />
audit and issue audit reports of entities <strong>in</strong> <strong>Oman</strong>.<br />
Jo<strong>in</strong>t stock companies have to get their f<strong>in</strong>ancial statements audited and approved at their<br />
Annual General Meet<strong>in</strong>g, which have to be held with<strong>in</strong> three months of the year end. They<br />
must publish the annual audited f<strong>in</strong>ancial statements <strong>in</strong> the newspapers with<strong>in</strong> three<br />
months from the end of the f<strong>in</strong>ancial year.<br />
Jo<strong>in</strong>t stock companies can appo<strong>in</strong>t only those auditors who are accredited with the Capital<br />
Market Authority of <strong>Oman</strong>. Jo<strong>in</strong>t stock companies must rotate their auditors after each<br />
four year period.<br />
Every Limited Liability Company shall have at least one auditor if the number of partners<br />
exceeds ten, or the capital of the company exceeds RO. 50,000 or the appo<strong>in</strong>tment is<br />
demanded by partners represent<strong>in</strong>g at least one fifth of the capital of the company.<br />
Brokerage companies licensed by the Capital Market Authority (CMA) must submit halfyearly<br />
audited accounts to the CMA.<br />
Banks have to submit audited accounts to Central Bank of <strong>Oman</strong> with<strong>in</strong> one month from<br />
the end of the f<strong>in</strong>ancial year.<br />
Insurance companies have to submit their audited f<strong>in</strong>ancial statements with<strong>in</strong> five months<br />
of the f<strong>in</strong>ancial year end to the Commissioner of Insurance, M<strong>in</strong>istry of Commerce and<br />
Industry.<br />
Central Bank of <strong>Oman</strong> has made it compulsory for entities that enjoy credit facilities above<br />
certa<strong>in</strong> limits to submit their audited f<strong>in</strong>ancial statements to their banks with<strong>in</strong> four months<br />
of the entity’s f<strong>in</strong>ancial year end.<br />
The <strong>in</strong>come tax law requires that all taxable entities with a capital of RO. 20,000 or more,<br />
should attach the audited f<strong>in</strong>ancial statements with their f<strong>in</strong>al tax returns, which should be<br />
submitted with<strong>in</strong> six months of the entity’s f<strong>in</strong>ancial year end.<br />
2.5 Incorporation of bus<strong>in</strong>ess entities<br />
Registration procedures<br />
Every bus<strong>in</strong>ess entity do<strong>in</strong>g bus<strong>in</strong>ess <strong>in</strong> <strong>Oman</strong> must be registered <strong>in</strong> the Commercial<br />
Register of the M<strong>in</strong>istry of Commerce and Industry. <strong>Bus<strong>in</strong>ess</strong> entities must also register<br />
with the <strong>Oman</strong> Chamber of Commerce and Industry and the local municipality. All non-<br />
<strong>Oman</strong>i person do<strong>in</strong>g bus<strong>in</strong>ess <strong>in</strong> <strong>Oman</strong> have to also register under Foreign Capital<br />
Investment Law.<br />
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2.6 Comparison of ma<strong>in</strong> <strong>in</strong>vestment vehicles<br />
Jo<strong>in</strong>t stock companies<br />
Jo<strong>in</strong>t stock companies whose shares are issued to public should have a m<strong>in</strong>imum capital<br />
of RO. 2 million whereas closely held jo<strong>in</strong>t stock companies should have a m<strong>in</strong>imum<br />
capital of RO. 0.5 million.<br />
Foreign equity participation up to 100% of the company’s capital may be permitted <strong>in</strong><br />
specified projects provided the project’s capital is not less than RO. 500,000.<br />
Limited liability companies (LLC)<br />
LLC can be formed with m<strong>in</strong>imum capital of RO. 20,000 if it is 100% <strong>Oman</strong>i company. If<br />
the entity comprises of <strong>Oman</strong>i national and a foreign <strong>in</strong>vestor, the m<strong>in</strong>imum capital<br />
requirement is RO. 150,000 of which the maximum foreign participation allowed is 70%.<br />
Foreign capital participation <strong>in</strong> specified projects may be permitted upto 100%, provided<br />
the capital of the company is a m<strong>in</strong>imum of RO. 500,000.<br />
Formation, operation and management through LLC are easier, faster and smoother.<br />
2.7 Procedures to set up entity<br />
The procedures and documentation to register various entities are generally the follow<strong>in</strong>g.<br />
These procedures may vary depend<strong>in</strong>g on specific circumstances. In each case the<br />
prescribed fees should be paid to the concerned authorities.<br />
Jo<strong>in</strong>t stock companies<br />
<br />
<br />
<br />
The memorandum and articles of association of the company is to be approved by<br />
Director General of Commerce.<br />
Application for authorization to the M<strong>in</strong>istry of Commerce & Industry shall be signed<br />
by, at least, three promoters accompanied by the company’s articles of association<br />
and memorandum of association signed by all promoters.<br />
Bank certificate assert<strong>in</strong>g the payment of the part due of the value of the shares<br />
subscribed by the promoters.<br />
Limited liability companies<br />
<br />
<br />
<br />
<br />
The memorandum of association of the company is to be signed by all the<br />
shareholders of the company.<br />
The number of shares to be owned by each shareholder is to be determ<strong>in</strong>ed and the<br />
nom<strong>in</strong>al value of all shares is to be fully paid <strong>in</strong> cash or <strong>in</strong> k<strong>in</strong>d.<br />
The company is to be registered <strong>in</strong> the Commercial Register.<br />
A special account is to be opened with a bank operat<strong>in</strong>g <strong>in</strong> <strong>Oman</strong>.<br />
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A report from an auditor licensed to operate <strong>in</strong> <strong>Oman</strong> is to be submitted for<br />
confirm<strong>in</strong>g the value and payment of each shareholder’s contribution <strong>in</strong> k<strong>in</strong>d.<br />
Sole proprietorship, limited partnership, general partnership<br />
<br />
<br />
<br />
Approval of proposed commercial name.<br />
Completion of standard form.<br />
Submission of identity / passport documents of the partners and authorized<br />
signatories.<br />
Branch of a foreign entity<br />
<br />
<br />
<br />
<br />
<br />
Completion of required forms.<br />
Articles of association of the parent company along with the corporate documents<br />
duly attested.<br />
Power of attorney of the head office for the appo<strong>in</strong>tment of the branch manager and<br />
certificate from the head office assum<strong>in</strong>g the responsibility for the activities of the<br />
branch, duly attested.<br />
Copy of Passport of the authorized branch manager.<br />
Copy of the work contract / agreement made with the Government or a Government<br />
company <strong>in</strong> <strong>Oman</strong>.<br />
Representative office of a foreign entity<br />
<br />
<br />
<br />
<br />
Completion of required forms.<br />
Articles of association of the parent company along with corporate documents duly<br />
attested.<br />
Power of attorney of the head office for the appo<strong>in</strong>tment of the office manager and<br />
certificate from the head office assum<strong>in</strong>g the responsibility for the activities of the<br />
office duly attested.<br />
Copy of Passport of the authorized officer.<br />
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2.8 Capital contribution<br />
For a Limited Liability Company (LLC) with a m<strong>in</strong>imum capital of RO 150,000 the<br />
maximum foreign equity participation is restricted to 70% of the capital.<br />
For Limited Liability Company or Jo<strong>in</strong>t Stock Company, foreign participation is allowed up<br />
to 100% where there is a m<strong>in</strong>imum capital of RO. 500,000.<br />
For SAOG companies, promoters’ contribution is a m<strong>in</strong>imum of 30% of the share capital<br />
and has to be contributed as per the public issue schedule.<br />
The capital contribution is required at the formation stage itself, as a bank certificate has<br />
to be submitted for capital contribution <strong>in</strong> cash. Where the contribution is <strong>in</strong> k<strong>in</strong>d, a<br />
certificate from an auditor licensed to operate <strong>in</strong> <strong>Oman</strong> should be submitted confirm<strong>in</strong>g<br />
the value and payment of each shareholder’s contribution <strong>in</strong> k<strong>in</strong>d.<br />
2.9 Dissolution and liquidation of bus<strong>in</strong>ess entities<br />
Dissolution procedures for partnerships and jo<strong>in</strong>t ventures are simple and fast. They<br />
require registration of the Partnership Dissolution Deeds.<br />
A Limited Liability Company shall be dissolved for any of the follow<strong>in</strong>g reasons:<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
Expiration of the term fixed of the company or the occurrence of any event obligat<strong>in</strong>g<br />
the dissolution provided it is laid down <strong>in</strong> the memorandum of association or articles<br />
of association of the company.<br />
Accomplishment of the purpose for which the company was established or<br />
impossibility of accomplish<strong>in</strong>g such purpose.<br />
Transfer all shares or all stocks <strong>in</strong> the capital of the company to one partner.<br />
Bankruptcy of the company or loss of all or most of its capital is such loss renders<br />
the effective use of the rema<strong>in</strong><strong>in</strong>g capital impossible.<br />
Agreement of the partners to dissolve the company.<br />
If at the request of any <strong>in</strong>terested party, and for any of the forego<strong>in</strong>g reasons or for<br />
any other reason seriously impair<strong>in</strong>g the company’s ability to accomplish its object,<br />
the Authority for the Settlement of Commercial Disputes determ<strong>in</strong>es the dissolution<br />
of the company.<br />
The partners meet<strong>in</strong>g may resolve, at any time, to dissolve the company upon the<br />
favourable vote of a majority of members represent<strong>in</strong>g, at least, three quarters of the<br />
Company’s capital.<br />
After its dissolution the Limited Liability Company shall be liquidated <strong>in</strong> accordance<br />
with the law and the provisions of the company’s memorandum of association,<br />
provided such provisions shall not violate any provisions of the law of mandatory<br />
nature.<br />
A jo<strong>in</strong>t stock company shall be dissolved for any of the reasons specified <strong>in</strong> the<br />
Company’s articles of association or any of the first six reasons mentioned above.<br />
DOING BUSINESS IN OMAN | 19
2.10 Annual statutory fil<strong>in</strong>g<br />
Fil<strong>in</strong>g of f<strong>in</strong>ancial statements<br />
Jo<strong>in</strong>t stock companies should file copies of audited f<strong>in</strong>ancial statements to the Capital<br />
Market Authority and to the Commercial Registry at least two weeks prior to the Annual<br />
General Meet<strong>in</strong>g of the Company.<br />
Fil<strong>in</strong>g of <strong>in</strong>come tax returns<br />
<strong>Bus<strong>in</strong>ess</strong> organizations hold<strong>in</strong>g a Commercial Registration, <strong>in</strong>clud<strong>in</strong>g those wholly owned<br />
by <strong>Oman</strong>i nationals, must file provisional and annual <strong>in</strong>come tax returns. Provisional tax<br />
return has to be filed with<strong>in</strong> three months from the end of the f<strong>in</strong>ancial year along with the<br />
payment of tax dues and the f<strong>in</strong>al tax return has to be filed with<strong>in</strong> six months of the end of<br />
the f<strong>in</strong>ancial year, along with the audited f<strong>in</strong>ancial statements as applicable and balance<br />
tax payable if any.<br />
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Chapter 3:<br />
Foreign Exchange Controls<br />
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Chapter 3: Foreign Exchange Controls<br />
3.1 Foreign exchange controls<br />
<strong>Oman</strong> does not have any foreign exchange controls. <strong>Oman</strong> imposes no restrictions on the<br />
repatriation of profits or capital by foreign <strong>in</strong>vestors from <strong>Oman</strong>.<br />
The Rial <strong>Oman</strong>i is fully convertible and is pegged to the U.S dollar at a fixed parity,<br />
1 RO ≈ US$ 2.60.<br />
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Chapter 4:<br />
Taxation<br />
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Chapter 4: Taxation<br />
4.1 Overview of <strong>Oman</strong> tax system<br />
<strong>Bus<strong>in</strong>ess</strong> <strong>in</strong>come tax – direct tax<br />
Income tax <strong>in</strong> the Sultanate of <strong>Oman</strong> was <strong>in</strong>troduced by Income Tax Decree of 1971, and<br />
is governed by the Income Tax Law. It is adm<strong>in</strong>istered by the Secretariat General of<br />
Taxation at the M<strong>in</strong>istry of F<strong>in</strong>ance.<br />
The practices of the Secretariat General of Taxation are cont<strong>in</strong>uously develop<strong>in</strong>g and<br />
therefore, it is essential to obta<strong>in</strong> up to date advice before tak<strong>in</strong>g decisions. A new tax law<br />
has been <strong>in</strong>troduced <strong>in</strong> 2009 and is effective for the year 2010 and onwards.<br />
<strong>Bus<strong>in</strong>ess</strong> <strong>in</strong>come tax is the only form of direct tax <strong>in</strong> <strong>Oman</strong>.<br />
Personal <strong>in</strong>come tax<br />
There is no personal <strong>in</strong>come tax <strong>in</strong> <strong>Oman</strong>.<br />
Indirect tax<br />
Customs Duty and some miscellaneous local taxes / levies constitute the <strong>in</strong>direct tax <strong>in</strong><br />
<strong>Oman</strong>. <strong>Oman</strong> has no Consumption Tax, Value Added Tax (VAT) or Sales Tax.<br />
4.2 Income tax <strong>in</strong>centives for foreign <strong>in</strong>vestors /<br />
enterprises<br />
The government has <strong>in</strong>troduced various measures and has provided several tax<br />
<strong>in</strong>centives to give a stimulus for economic growth and to attract foreign <strong>in</strong>vestment <strong>in</strong><br />
<strong>Oman</strong> which <strong>in</strong>clude the follow<strong>in</strong>g:<br />
i. Exemption from <strong>in</strong>come tax for a five year period to any <strong>in</strong>come that accrues to an<br />
establishment or a Company from the follow<strong>in</strong>g activities carried on as their ma<strong>in</strong><br />
bus<strong>in</strong>ess.<br />
Industry <strong>in</strong> accordance with Law for Unified Industrial Organization of Gulf<br />
Cooperation Council Countries.<br />
M<strong>in</strong><strong>in</strong>g <strong>in</strong> accordance with the Law of M<strong>in</strong><strong>in</strong>g.<br />
The export of locally manufactured or processed products.<br />
The operation of hotels and tourist villages.<br />
Farm<strong>in</strong>g and process<strong>in</strong>g of farm products <strong>in</strong>clud<strong>in</strong>g animals and the process<strong>in</strong>g or<br />
manufactur<strong>in</strong>g of animal products and agricultural <strong>in</strong>dustries.<br />
Fish<strong>in</strong>g and fish process<strong>in</strong>g, farm<strong>in</strong>g and breed<strong>in</strong>g.<br />
24 | DOING BUSINESS IN OMAN
University education, college or higher <strong>in</strong>stitutes, private schools, nurseries or<br />
tra<strong>in</strong><strong>in</strong>g colleges and <strong>in</strong>stitutes.<br />
Medical care by establish<strong>in</strong>g private hospitals.<br />
The tax exemption may be renewed and extended for another period of five years. Losses<br />
<strong>in</strong>curred for the first five years for the activities specified above, can be carried forward,<br />
without any time restriction, to be set off aga<strong>in</strong>st subsequent <strong>in</strong>come.<br />
ii. Income accru<strong>in</strong>g to a foreign entity from the activity <strong>in</strong> the field of shipp<strong>in</strong>g or air<br />
transport shall be exempted from tax provided a similar treatment is accorded on a<br />
reciprocal basis <strong>in</strong> the other country.<br />
iii. Income accru<strong>in</strong>g to funds set up outside <strong>Oman</strong> to deal <strong>in</strong> <strong>Oman</strong>i securities listed <strong>in</strong><br />
Muscat Securities Market shall be exempted from tax.<br />
iv. For bus<strong>in</strong>esses established <strong>in</strong> Free Trade Zones, special concessions are given<br />
such as 30 year exemption from <strong>in</strong>come tax, import of commodities at zero duty,<br />
foreign equity participation upto 100% and facility to <strong>in</strong>def<strong>in</strong>itely carry forward and set<br />
off loss.<br />
v. <strong>Oman</strong> has signed several treaties for avoidance of double taxation.<br />
4.3 Direct tax and rules<br />
Scope<br />
Every <strong>in</strong>come aris<strong>in</strong>g or derived <strong>in</strong> <strong>Oman</strong> is taxed <strong>in</strong> <strong>Oman</strong>. Tax is charged on taxable<br />
<strong>in</strong>come accru<strong>in</strong>g to a tax payer <strong>in</strong> a tax year. Unless specifically permitted, <strong>in</strong>come is to be<br />
recognised on accrual basis and the basis has to be followed consistently.<br />
The new tax law confirms the global system of tax under which <strong>Oman</strong>i proprietorships and<br />
companies are liable to tax on all their <strong>in</strong>come wherever earned.<br />
The term taxable <strong>in</strong>come specifically <strong>in</strong>cludes <strong>in</strong>come earned dur<strong>in</strong>g the pre-<strong>in</strong>corporation<br />
or pre-commencement of bus<strong>in</strong>ess, which is deemed to accrue on the date of<br />
commencement of that bus<strong>in</strong>ess.<br />
Registration<br />
It is mandatory for all tax payers to register with the Secretariat General for Taxation by<br />
fil<strong>in</strong>g a prescribed form with<strong>in</strong> three months from the date of <strong>in</strong>corporation and notify<br />
with<strong>in</strong> two months, any changes <strong>in</strong> address, name and legal status.<br />
Applicability<br />
The taxable entities are <strong>Oman</strong>i proprietorships, <strong>Oman</strong>i companies and permanent<br />
establishments. The term permanent establishment refers to foreign entities (<strong>in</strong>clud<strong>in</strong>g<br />
persons) carry<strong>in</strong>g out activities <strong>in</strong> <strong>Oman</strong> either directly or through a dependent agent.<br />
DOING BUSINESS IN OMAN | 25
GCC nationals<br />
Citizens of Gulf Cooperation Council (GCC) countries are treated as <strong>Oman</strong>i nationals for<br />
tax purposes if they are engaged <strong>in</strong> specific economic activities. GCC countries are UAE,<br />
Qatar, Bahra<strong>in</strong>, Kuwait, Saudi Arabia, and <strong>Oman</strong>.<br />
Chargeability<br />
Income chargeable to tax as per Income tax law means <strong>in</strong>come of any k<strong>in</strong>d, whether <strong>in</strong><br />
cash or <strong>in</strong> k<strong>in</strong>d, and <strong>in</strong>cludes <strong>in</strong> particular<br />
i. Profit from any bus<strong>in</strong>ess<br />
ii. Consideration for carry<strong>in</strong>g on researches and development<br />
iii. Consideration for the use or right to use of computer software<br />
iv. Consideration for lease or usufruct of real estate, mach<strong>in</strong>ery or other moveable or<br />
immovable property<br />
v. Profits result<strong>in</strong>g from grant<strong>in</strong>g any person a usufruct of the right to use a real estate,<br />
mach<strong>in</strong>ery or any other moveable or immovable property<br />
vi. Dividends, <strong>in</strong>terests, or discount received<br />
vii. Royalties or management fees<br />
Tax period<br />
The tax year is a twelve month period commenc<strong>in</strong>g from 1st January and end<strong>in</strong>g on 31st<br />
December. However, bus<strong>in</strong>ess entities may apply to Secretariat General of Taxation to<br />
use any other date for tax year clos<strong>in</strong>g provided this date is followed consistently.<br />
The first taxable period at the commencement of operations may be less than twelve<br />
months or for up to a maximum of eighteen months. In the event of a company be<strong>in</strong>g <strong>in</strong><br />
liquidation, the account<strong>in</strong>g period may be for less than twelve months.<br />
F<strong>in</strong>ancial statements and records<br />
The f<strong>in</strong>ancial statements must be prepared under the accrual basis of account<strong>in</strong>g. Prior<br />
approval has to be taken for ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g accounts under any other basis. The f<strong>in</strong>ancial<br />
statements have to be audited by auditors legally licensed to operate <strong>in</strong> <strong>Oman</strong>. All<br />
account<strong>in</strong>g books, vouchers and documents have to be preserved for at least ten years<br />
from the end of the account<strong>in</strong>g year. All books of accounts have to be ma<strong>in</strong>ta<strong>in</strong>ed <strong>in</strong> Rial<br />
<strong>Oman</strong>i. Books may be ma<strong>in</strong>ta<strong>in</strong>ed <strong>in</strong> foreign currency only with the authorization from the<br />
Secretariat General of Taxation.<br />
Computation of <strong>in</strong>come<br />
The taxable <strong>in</strong>come for any tax year means the gross <strong>in</strong>come for the year after deduct<strong>in</strong>g<br />
expenses <strong>in</strong>curred for earn<strong>in</strong>g the <strong>in</strong>come or allow<strong>in</strong>g any deductions or set off or any<br />
exemption claimed under the <strong>in</strong>come tax law or other laws.<br />
26 | DOING BUSINESS IN OMAN
Rates of tax<br />
Every taxable entity <strong>in</strong> <strong>Oman</strong> shall pay tax at a flat rate of 12% on taxable <strong>in</strong>come <strong>in</strong><br />
excess of RO. 30,000. No tax is payable on <strong>in</strong>come up to RO. 30,000. Tax payers<br />
engaged <strong>in</strong> petroleum exploration, shall pay tax at a rate of 55% of the taxable <strong>in</strong>come <strong>in</strong><br />
respect of any <strong>in</strong>come derived from the sale of petroleum. The word Petroleum <strong>in</strong>cludes<br />
crude oil, natural gas, asphalt, oil derivatives and associated substance of each.<br />
Exemption from <strong>in</strong>come tax<br />
i. All dividend <strong>in</strong>come and capital ga<strong>in</strong>s on sale of shares listed on the Muscat<br />
Securities Market are exempted from tax.<br />
ii. Profits derived from turnkey contracts are exempt from tax, provided the services<br />
term<strong>in</strong>ate before reach<strong>in</strong>g <strong>Oman</strong> port and the supplier does not conduct bus<strong>in</strong>ess<br />
activity <strong>in</strong> <strong>Oman</strong>.<br />
iii. Income from bus<strong>in</strong>ess activities mentioned <strong>in</strong> the section 4.2 above “Income Tax<br />
Incentives for Foreign Investors / Enterprises” are also exempt from tax as expla<strong>in</strong>ed<br />
there<strong>in</strong>.<br />
Assessment<br />
Assessment is completed on the basis of the annual return of <strong>in</strong>come. The tax authorities<br />
may ask for several details before complet<strong>in</strong>g the assessment.<br />
Assessments may be made with<strong>in</strong> five years from the end of the tax year for which the<br />
f<strong>in</strong>al return was submitted. If no f<strong>in</strong>al return is submitted, the time limit for mak<strong>in</strong>g the<br />
assessment shall be ten years from the end of that tax year for which the f<strong>in</strong>al return was<br />
due.<br />
In cases of fraud and use of means of deception, the time limit for mak<strong>in</strong>g assessment<br />
shall be extended to ten years.<br />
Objection<br />
Objection must be filed with<strong>in</strong> 45 days from the date of serv<strong>in</strong>g (post<strong>in</strong>g) the assessment<br />
order. The time limit for consideration of objection is five months which is extendable to<br />
further five months.<br />
Offences and penalties<br />
Non-compliance of the follow<strong>in</strong>g attracts penalty and/or punishment that may <strong>in</strong>clude<br />
imprisonment. The penalty may be imposed on the tax payer or the pr<strong>in</strong>cipal officer of the<br />
tax payer or on both:<br />
i. Failure to submit provisional or f<strong>in</strong>al return<br />
ii. Failure to declare correct taxable <strong>in</strong>come<br />
iii. Failure to submit any statements, <strong>in</strong>formation, f<strong>in</strong>ancial statements or account<strong>in</strong>g<br />
records or any other document with<strong>in</strong> the time specified<br />
DOING BUSINESS IN OMAN | 27
iv. Failure of attendance at the date and place specified<br />
v. Abstention from answer<strong>in</strong>g any questions<br />
vi. Failure by the owner of the bus<strong>in</strong>ess establishment or permanent establishment to<br />
designate a pr<strong>in</strong>cipal officer<br />
vii. Deliberately obta<strong>in</strong><strong>in</strong>g a tax exemption without be<strong>in</strong>g eligible<br />
viii. Intentionally destroy<strong>in</strong>g, conceal<strong>in</strong>g, or gett<strong>in</strong>g rid of any documents, records or<br />
f<strong>in</strong>ancial statements requested by the Secretariat General of Taxation<br />
Carry forward of bus<strong>in</strong>ess losses<br />
Losses are allowed to be carried forward for a maximum period of five years and offset<br />
aga<strong>in</strong>st future profits. Losses shall not be carried back. For foreign entities which carry on<br />
bus<strong>in</strong>ess through more than one permanent establishment, the loss of any of those<br />
permanent establishments for any tax year is allowed to be carried forward only after<br />
be<strong>in</strong>g reduced by the taxable <strong>in</strong>come for that tax year of other permanent establishment<br />
owned by that foreign entity. A change <strong>in</strong> the ownership of the entity does not generally<br />
affect the position with regard to losses carried forward. Industrial companies which have<br />
been exempted from tax for five years can carry forward the loss <strong>in</strong>def<strong>in</strong>itely until fully<br />
utilised.<br />
4.4 Special taxation rules<br />
Representative offices, branch offices, trad<strong>in</strong>g offices set up by a foreign person <strong>in</strong> <strong>Oman</strong><br />
will be treated as a tax payer and chargeable to <strong>in</strong>come tax <strong>in</strong> <strong>Oman</strong>.<br />
The Income Tax Law def<strong>in</strong>es a Permanent Establishment as a fixed place of bus<strong>in</strong>ess<br />
through which a bus<strong>in</strong>ess is wholly or partly carried on <strong>in</strong> <strong>Oman</strong> by a foreign person either<br />
directly or through a dependent agent. It <strong>in</strong>cludes especially:<br />
i. A place of sale, place of management, branch, office, factory or workshop<br />
ii. A m<strong>in</strong>e, quarry or other place of extraction of natural resources<br />
iii. A build<strong>in</strong>g site, a place of construction or an assembly project<br />
iv. Any foreign person who provides consultancy or any other service <strong>in</strong> <strong>Oman</strong> for a<br />
period or periods of not less than 90 days <strong>in</strong> the aggregate <strong>in</strong> any 12 months whether<br />
directly or through employees of that person or others designated by that person to<br />
perform such services<br />
The fixed place of bus<strong>in</strong>ess shall not be considered as a permanent establishment if it is<br />
used solely for the follow<strong>in</strong>g purposes:<br />
i. Storage, display or delivery of goods or merchandise belong<strong>in</strong>g to that person<br />
ii. The ma<strong>in</strong>tenance of a stock of goods belong<strong>in</strong>g to that person for the purpose of<br />
storage, display or delivery or process<strong>in</strong>g by another person<br />
iii. Purchase of goods, merchandise, or collection of <strong>in</strong>formation for the purpose of the<br />
bus<strong>in</strong>ess<br />
28 | DOING BUSINESS IN OMAN
iv. Carry<strong>in</strong>g on any other activity of a preparatory or auxiliary character for the purposes<br />
of the bus<strong>in</strong>ess<br />
v. The comb<strong>in</strong>ation of any of the activities mentioned above provided that the overall<br />
activity of the fixed place of bus<strong>in</strong>ess result<strong>in</strong>g from that comb<strong>in</strong>ation is of a<br />
preparatory or auxiliary character<br />
4.5 Expenses<br />
Deductible expenses<br />
The law permits deduction of all expenses <strong>in</strong>curred dur<strong>in</strong>g the tax year to the extent that<br />
such expenses are actually <strong>in</strong>curred for the purpose of generat<strong>in</strong>g the <strong>in</strong>come. Any<br />
expenses if determ<strong>in</strong>ed by the tax department as excessive to the related <strong>in</strong>come will be<br />
disallowed to the extent of amount deemed to be excessive.<br />
The follow<strong>in</strong>g expenses are also considered for deduction:<br />
i. Expenses <strong>in</strong>curred before the commencement of bus<strong>in</strong>ess or registration, but only at<br />
the amount and to the limits specified <strong>in</strong> the Law, on condition that the date of<br />
commencement of bus<strong>in</strong>ess or the date of registration falls with<strong>in</strong> the account<strong>in</strong>g<br />
period end<strong>in</strong>g <strong>in</strong> that tax year<br />
ii. Amounts paid dur<strong>in</strong>g that tax year to fulfil the dues of the employees of the<br />
establishment, <strong>Oman</strong>i company or the permanent establishment <strong>in</strong> accordance with<br />
the Labour Law or any other Laws<br />
iii. Contribution paid by the taxpayer <strong>in</strong> that tax year, <strong>in</strong> its capacity as employer, to the<br />
Public Authority for Social Insurance <strong>in</strong> accordance with the provisions of the Social<br />
Insurance Law<br />
iv. Amounts paid dur<strong>in</strong>g that tax year on contribution for the pension funds <strong>in</strong><br />
accordance with the rules<br />
v. Any debts, if they are considered to have become bad debts dur<strong>in</strong>g that tax year <strong>in</strong><br />
accordance with the conditions and rules<br />
vi. Amounts paid by the taxpayer, either as a cost of acquisition of any of the assets<br />
specified <strong>in</strong> the Tax Law, subject to certa<strong>in</strong> exclusions, or as necessary expenses <strong>in</strong><br />
case disposal is made with<strong>in</strong> the account<strong>in</strong>g period end<strong>in</strong>g <strong>in</strong> that tax year.<br />
vii. Depreciation of capital assets or the balanc<strong>in</strong>g allowance for the account<strong>in</strong>g period<br />
end<strong>in</strong>g <strong>in</strong> that tax year<br />
viii. Audit fees <strong>in</strong>curred dur<strong>in</strong>g that tax year<br />
ix. Sponsorship fees <strong>in</strong>curred dur<strong>in</strong>g the tax year, subject to the rules<br />
x. Donations paid dur<strong>in</strong>g the tax year to entities approved by the F<strong>in</strong>ancial Affairs and<br />
Energy Resources Council on condition that the aggregate amount of donations<br />
does not exceed five percent of the gross <strong>in</strong>come of the taxpayer for that tax year<br />
xi. The deduction for depreciation is available on any capital asset owned by the<br />
bus<strong>in</strong>ess entity and used by it for bus<strong>in</strong>ess purposes only if it cont<strong>in</strong>ues to be <strong>in</strong> use<br />
for that purpose till the end of that account<strong>in</strong>g period. It is calculated at the follow<strong>in</strong>g<br />
rates on the cost <strong>in</strong>curred by the bus<strong>in</strong>ess entity<br />
DOING BUSINESS IN OMAN | 29
Type of fixed asset<br />
Rate of<br />
Depreciation<br />
First class build<strong>in</strong>gs 4%<br />
Second class build<strong>in</strong>gs 15%<br />
Quarries, jetties, pipel<strong>in</strong>es, road and railways 10%<br />
Build<strong>in</strong>g used for hospitals and educational Institutions 100%<br />
Heavy mach<strong>in</strong>es, vehicles, computers 33.33%<br />
Furniture and fixtures 33.33 %<br />
Mach<strong>in</strong>ery compris<strong>in</strong>g drill<strong>in</strong>g rigs 10%<br />
General mach<strong>in</strong>ery, equipment and tools 15%<br />
Ship or aircraft 15%<br />
The rate of depreciation is doubled if the build<strong>in</strong>g is used by an <strong>in</strong>dustrial establishment,<br />
but not as a build<strong>in</strong>g for the hous<strong>in</strong>g of employee’s offices or storage.<br />
The new tax law <strong>in</strong>cludes pool<strong>in</strong>g of asset concept for depreciation on mach<strong>in</strong>ery and<br />
equipment. Mach<strong>in</strong>ery and equipment <strong>in</strong>cludes computer software, <strong>in</strong>stallations, furniture,<br />
fixtures and fitt<strong>in</strong>gs and vehicles. There are three pools and each asset fall<strong>in</strong>g under<br />
mach<strong>in</strong>ery and equipment has to be allocated to a respective pool and the deprecation on<br />
each pool is calculated on reduc<strong>in</strong>g balance method. To calculate depreciation for the<br />
year, an open<strong>in</strong>g written down value plus addition of assets m<strong>in</strong>us sale proceeds of<br />
disposals of assets is taken as asset base of that pool and depreciation rate is applied on<br />
it. For the category of Mach<strong>in</strong>ery and equipment, there would be no need to compute<br />
taxable ga<strong>in</strong> or loss on disposal separately, s<strong>in</strong>ce the sale proceeds are considered <strong>in</strong><br />
computation of depreciation.<br />
Asset wise calculation of depreciation on straight l<strong>in</strong>e basis cont<strong>in</strong>ues to apply for<br />
build<strong>in</strong>gs, ships, aircrafts and <strong>in</strong>tangible assets.<br />
xii. Head Office Charges: Foreign companies operat<strong>in</strong>g <strong>in</strong> <strong>Oman</strong> through branches or<br />
hav<strong>in</strong>g deemed permanent establishment status are entitled to a deduction for head<br />
office expenses which are <strong>in</strong>curred by the head office and allocated or charged by<br />
the head office to the permanent establishment subject to some conditions<br />
xiii. Managerial / Partner’s remuneration payable <strong>in</strong> accordance with Commercial<br />
Companies Law<br />
xiv. Remuneration payable to the chairman/board of directors of jo<strong>in</strong>t stock companies <strong>in</strong><br />
accordance with Commercial Companies Law<br />
30 | DOING BUSINESS IN OMAN
Non-deductible expenses<br />
The follow<strong>in</strong>g deductions are not allowed <strong>in</strong> arriv<strong>in</strong>g at the taxable <strong>in</strong>come:<br />
i. Any capital expenditure <strong>in</strong>curred dur<strong>in</strong>g the tax year, except those which are<br />
deducted <strong>in</strong> accordance with the provisions of Tax Law<br />
ii. Any amounts payable or paid as tax on <strong>in</strong>come <strong>in</strong> accordance with the provisions of<br />
Tax Law, or any other tax on <strong>in</strong>come which is payable or paid <strong>in</strong> any other country<br />
for that tax year or for any other period<br />
iii. Any costs borne or losses <strong>in</strong>curred dur<strong>in</strong>g that tax year where the costs were<br />
recovered, or the losses were compensated under a contract, <strong>in</strong>surance policy,<br />
Court judgement or others<br />
iv. Any amounts considered by the Secretariat General not to be reasonable by<br />
reference to the value of the services rendered or other considerations relat<strong>in</strong>g to<br />
such services<br />
v. Loss from the disposal of securities listed <strong>in</strong> Muscat Securities Market<br />
4.6 Special zones<br />
Industrial estates<br />
The M<strong>in</strong>istry of Commerce and Industry has created <strong>in</strong>dustrial estates at various<br />
locations. The <strong>in</strong>dustrial estates are managed by the Public Establishment for Industrial<br />
Estates (PEIE). The <strong>in</strong>dustrial zones have fully developed plots with appropriate<br />
<strong>in</strong>frastructure facilities. Investment <strong>in</strong>centives <strong>in</strong>clude the provision of <strong>in</strong>dustrial plots <strong>in</strong><br />
<strong>in</strong>dustrial zones for nom<strong>in</strong>al charges.<br />
Free trade zones<br />
Free Trade Zones have been established for attract<strong>in</strong>g foreign <strong>in</strong>vestment. These zones<br />
help to create focussed and concentrated <strong>in</strong>dustrial growth. The major <strong>in</strong>centives provided<br />
are:<br />
i. 30 year exemption from <strong>in</strong>come tax<br />
ii. Import of commodities at zero duty<br />
iii. Foreign equity participation up to 100%<br />
iv. Tax loss can be carried forward <strong>in</strong>def<strong>in</strong>itely for set off<br />
4.7 Withhold<strong>in</strong>g tax<br />
Introduction<br />
Withhold<strong>in</strong>g Tax was <strong>in</strong>troduced by Royal Decree 87/96. Withhold<strong>in</strong>g Tax is charged on<br />
certa<strong>in</strong> payments made by bus<strong>in</strong>esses <strong>in</strong> <strong>Oman</strong> to foreign companies which do not have a<br />
permanent establishment <strong>in</strong> <strong>Oman</strong>.<br />
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Applicability<br />
The payments to which the withhold<strong>in</strong>g tax applies are:<br />
i. Royalties<br />
ii. Consideration for research and development<br />
iii. Consideration for the use of or right to use computer software<br />
iv. Management fees<br />
Rate<br />
The rate of withhold<strong>in</strong>g tax is 10% of the payment made or credit given.<br />
Exemption<br />
Dividend and <strong>in</strong>terest <strong>in</strong>come do not attract withhold<strong>in</strong>g tax.<br />
Responsibility for tax deduction and payment<br />
The <strong>Oman</strong>i based tax payer is responsible for deduct<strong>in</strong>g the withhold<strong>in</strong>g tax and pay<strong>in</strong>g it<br />
to the Secretariat General of Taxation, with<strong>in</strong> 14 days of the end of the month <strong>in</strong> which the<br />
amount has been paid or credited, whichever is earlier.<br />
4.8 Double taxation agreements<br />
<strong>Oman</strong> has entered <strong>in</strong>to double taxation agreements with several countries <strong>in</strong>clud<strong>in</strong>g<br />
Algeria, Ch<strong>in</strong>a, Egypt, France, India, Italy, Korea, Lebanon, Mauritius, Pakistan,<br />
Russia, S<strong>in</strong>gapore, South Africa, Sudan, United K<strong>in</strong>gdom and Yemen.<br />
4.9 Transfer pric<strong>in</strong>g<br />
The Income Tax Law empowers the Secretariat General of Taxation to recompute the<br />
taxable <strong>in</strong>come of a tax payer if it is established that the ma<strong>in</strong> purpose of any transaction<br />
between related parties is to avoid part or whole of any liability to tax due and payable for<br />
that tax year.<br />
Related party transactions<br />
The Secretariat General of Taxation may make adjustments <strong>in</strong> respect of transactions<br />
between related parties. The department may also disallow all or part of any expense it<br />
believes to be <strong>in</strong>appropriate or unreasonable <strong>in</strong> relation to the value of goods sold or<br />
services rendered. The level of management and advisory fees are scrut<strong>in</strong>ised carefully.<br />
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4.10 Due date of tax returns fil<strong>in</strong>g and payments<br />
Every tax payer has to file provisional and f<strong>in</strong>al <strong>in</strong>come tax returns for a tax year. The<br />
returns have to be filed at Secretariat General of Taxation <strong>in</strong> prescribed forms. The return<br />
should reflect the amount of taxable <strong>in</strong>come for that year and the tax due and payable for<br />
the year. The tax is due for payment with<strong>in</strong> three months from the end of the relevant<br />
year.<br />
Provisional return of <strong>in</strong>come<br />
This return must be filed with<strong>in</strong> three months of the end of the f<strong>in</strong>ancial year along with the<br />
payment of tax.<br />
Annual return of <strong>in</strong>come<br />
This return must be filed with<strong>in</strong> six months of the end of the f<strong>in</strong>ancial year, along with the<br />
payment of balance tax due if any.<br />
4.11 Indirect taxes<br />
Custom duty<br />
Customs duty at a flat rate of 5% is levied on the CIF value of all imported goods, except<br />
for essential consumer goods, which are exempt. Customs duty is levied at a rate of<br />
100% on alcoholic beverages, tobacco and derivative products. On meat and meat<br />
products custom duty is at 20%.<br />
The classification of items for the purpose of determ<strong>in</strong><strong>in</strong>g the custom duty is amended<br />
from time to time by M<strong>in</strong>isterial decisions.<br />
Other taxes<br />
Municipal tax is levied @ 5% on hotel <strong>in</strong>come, 3% on property rents, 10% on leisure and<br />
c<strong>in</strong>ema <strong>in</strong>come and 2% on electricity bills exceed<strong>in</strong>g RO. 50 per month. Tourism levy of<br />
4% is charged on hotel <strong>in</strong>come.<br />
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Chapter 5:<br />
Employment<br />
34 | DOING BUSINESS IN OMAN
Chapter 5: Employment<br />
Labour relations <strong>in</strong> <strong>Oman</strong> are extremely peaceful. <strong>Oman</strong>i Labour Law covers employers<br />
and employees <strong>in</strong> the public and private sectors. It applies to both local and expatriate<br />
employees. The employer must obta<strong>in</strong> prior permission from the M<strong>in</strong>istry of Manpower to<br />
employ expatriates and the request must specify the occupation of the expatriates.<br />
5.1 <strong>Oman</strong>isation<br />
To ensure that the local population is employed to the greatest extent possible, the<br />
government encourages staff<strong>in</strong>g with <strong>Oman</strong>i nationals. Guidel<strong>in</strong>es issued by the M<strong>in</strong>istry<br />
of Manpower require private companies operat<strong>in</strong>g <strong>in</strong> specified sectors to employ <strong>Oman</strong>i<br />
nationals as a certa<strong>in</strong> percentage of their work force.<br />
<strong>Oman</strong>isation percentages are fixed for different sectors. In addition certa<strong>in</strong> specific jobs<br />
are fully reserved for <strong>Oman</strong>i nationals.<br />
5.2 Foreign entry visas and work permits<br />
The Government of <strong>Oman</strong> has issued visas procedures, which are aimed at liberaliz<strong>in</strong>g<br />
the entry regulations <strong>in</strong>to <strong>Oman</strong>.<br />
Citizens from certa<strong>in</strong> countries mentioned <strong>in</strong> list number one such as Austria, France,<br />
Germany, Italy, United K<strong>in</strong>gdom and United States of America are eligible to obta<strong>in</strong> s<strong>in</strong>gle<br />
entry visit visas on arrival on all ports of entry <strong>in</strong>to the country.<br />
Citizens of countries on list number one and list number two such as Albania, Egypt,<br />
India, Iran etc. can obta<strong>in</strong> multiple entry visas from <strong>Oman</strong>’s diplomatic missions or<br />
Commercial Representative Offices <strong>in</strong> these countries.<br />
In addition, for countries not covered under these lists, express visas may also be issued<br />
with<strong>in</strong> 24 hours of application.<br />
Employment visas are issued for a two year period to foreigners com<strong>in</strong>g to <strong>Oman</strong> for<br />
employment with multiple entry and renewal facility.<br />
5.3 Foreign personnel<br />
Employers wish<strong>in</strong>g to employ foreign nationals must obta<strong>in</strong> labour clearances from the<br />
M<strong>in</strong>istry of Manpower. An employer may engage a foreign employee only <strong>in</strong> the jobs<br />
specified by the labour clearance.<br />
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The foreign national, after obta<strong>in</strong><strong>in</strong>g the visa, has to apply for and receive a Resident card<br />
which enables the person to work <strong>in</strong> the country. The resident card is for two year validity<br />
and has to be renewed each time.<br />
Expatriates may be employed where there is a lack of local expertise, subject to the<br />
<strong>Oman</strong>isation regulations. Expatriates from some countries are required to obta<strong>in</strong> medical<br />
certification from Government of <strong>Oman</strong> approved cl<strong>in</strong>ics <strong>in</strong> their home country before their<br />
employment visa could be applied <strong>in</strong> <strong>Oman</strong>.<br />
5.4 Labour law<br />
The comprehensive <strong>Oman</strong>i Labour Law issued <strong>in</strong> 2003 applies to <strong>Oman</strong>i and foreign<br />
employers and employees. The law governs work contracts, wages, overtime pay, end of<br />
service benefits, leave, work hours, <strong>in</strong>dustrial safety, labour disputes, vocational tra<strong>in</strong><strong>in</strong>g,<br />
and the employment of <strong>Oman</strong>i and foreign nationals.<br />
5.5 How to recruit staff<br />
Newspapers, employment sites on the <strong>in</strong>ternet and recruitment agencies are the best<br />
avenues for recruitment. Labour clearance and visa are required before employ<strong>in</strong>g<br />
expatriates.<br />
5.6 Employment procedure<br />
Every employer has to enter <strong>in</strong>to an employment contract with the employee. The contract<br />
should <strong>in</strong>clude the follow<strong>in</strong>g:<br />
<br />
<br />
<br />
<br />
<br />
<br />
Personal details of the worker<br />
Wages<br />
Notice required to term<strong>in</strong>ate the contract<br />
Commitment to comply with the contract and laws of <strong>Oman</strong><br />
To respect the culture and traditions of <strong>Oman</strong><br />
Not to engage <strong>in</strong> activities harmful to national security<br />
5.7 Cost of employment<br />
There is availability of local <strong>Oman</strong>i nationals and expatriates for various jobs. The costs<br />
vary from job to job and the skill <strong>in</strong>volved. Generally the employers provide the expatriate<br />
employees with hous<strong>in</strong>g or rent allowance <strong>in</strong> addition to basic salary.<br />
The Government prescribe a m<strong>in</strong>imum monthly basic salary of RO. 180 plus RO. 20 as<br />
bonus for <strong>Oman</strong>i employees. In addition, employer must pay their <strong>Oman</strong>i employees a<br />
monthly accommodation allowance of RO. 10 and monthly transportation allowance<br />
RO. 10.<br />
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5.8 Welfare benefits<br />
Social security law<br />
<strong>Oman</strong>i employees are covered by the Social Security Law. This law is implemented by<br />
the Public Authority for Social Insurance (PASI). Employers are required to register all<br />
<strong>Oman</strong>i employees with the PASI and make the mandatory contributions / deductions.<br />
Employer has to pay 10.5% of employee’s basic salary as contribution towards social<br />
<strong>in</strong>surance while employee has to contribute 6.5% from his basic salary as social<br />
<strong>in</strong>surance every month.<br />
Term<strong>in</strong>al benefits<br />
Expatriate employees are entitled to gratuity upon term<strong>in</strong>ation of employment at the rate<br />
of 15 days basic salary per year dur<strong>in</strong>g the <strong>in</strong>itial three years of service and at the rate of<br />
one month’s basic salary for every subsequent year. Gratuity is calculated on the last<br />
basic salary drawn.<br />
Special requirements for foreign nationals<br />
For each expatriate employed, an employer must make an annual contribution of RO. 100<br />
towards a vocational tra<strong>in</strong><strong>in</strong>g levy.<br />
5.9 Term<strong>in</strong>ation of employment<br />
Employers may term<strong>in</strong>ate employment without notice on the follow<strong>in</strong>g grounds:<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
fraud<br />
damag<strong>in</strong>g mistake<br />
failure to comply with safety conditions<br />
leak<strong>in</strong>g trade secrets<br />
crim<strong>in</strong>al sentenc<strong>in</strong>g<br />
work<strong>in</strong>g under the <strong>in</strong>fluence of alcohol<br />
attack on the employer or other employees<br />
major failure to carry out a contract<br />
Employees may term<strong>in</strong>ate employment due to the follow<strong>in</strong>g:<br />
<br />
<br />
<br />
fraud on the part of the employer<br />
employer’s failure to fulfil major contractual obligations<br />
threats at the workplace<br />
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5.10 Trade union<br />
<strong>Oman</strong> law allows the formation of labour unions. The law forbids a strike for any reason.<br />
Collective barga<strong>in</strong><strong>in</strong>g is not permitted. However, there exist labour management<br />
committees <strong>in</strong> companies with more than 50 workers. These committees are not<br />
authorised to discuss conditions of employment <strong>in</strong>clud<strong>in</strong>g hours and wages. The Labour<br />
Welfare Board provides a venue for grievances.<br />
38 | DOING BUSINESS IN OMAN
Chapter 6:<br />
Account<strong>in</strong>g<br />
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Chapter 6: Account<strong>in</strong>g<br />
6.1 Account<strong>in</strong>g requirements<br />
As per the <strong>Oman</strong> Commercial Law, all commercial entities must ma<strong>in</strong>ta<strong>in</strong> proper books of<br />
accounts. The books of account have to be ma<strong>in</strong>ta<strong>in</strong>ed <strong>in</strong> <strong>Oman</strong> and the books can either<br />
be <strong>in</strong> Arabic or <strong>in</strong> English. The accounts have to be ma<strong>in</strong>ta<strong>in</strong>ed <strong>in</strong> Rial <strong>Oman</strong>i unless<br />
specific permission is taken for ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g <strong>in</strong> any other currency.<br />
The books of accounts and support<strong>in</strong>g documents have to be reta<strong>in</strong>ed for ten years.<br />
The accounts have to be ma<strong>in</strong>ta<strong>in</strong>ed on accrual basis of account<strong>in</strong>g and <strong>in</strong> accordance<br />
with generally accepted account<strong>in</strong>g pr<strong>in</strong>ciples.<br />
<strong>International</strong> f<strong>in</strong>ancial report<strong>in</strong>g standards (IFRS)<br />
<strong>Oman</strong> has adopted <strong>International</strong> F<strong>in</strong>ancial Report<strong>in</strong>g Standards (IFRS).<br />
Every jo<strong>in</strong>t stock company must prepare its f<strong>in</strong>ancial statements <strong>in</strong> accordance with the<br />
requirements of IFRS.<br />
Other bus<strong>in</strong>ess entities <strong>in</strong> <strong>Oman</strong> are also generally follow<strong>in</strong>g IFRS.<br />
40 | DOING BUSINESS IN OMAN
Chapter 7: Intellectual Property Rights<br />
<strong>Oman</strong> is a member of the World Intellectual Property Organisation (WIPO) and has taken<br />
measures to promulgate legal provisions to protect <strong>in</strong>tellectual property rights. The<br />
Copyright and Related Rights Law (Royal Decree 65/2008) - protect<strong>in</strong>g the rights of<br />
authors of literary, artistic and scientific works; and the Industrial Property Rights Law<br />
(Royal Decree 67/2008) promulgated <strong>in</strong> 2008 consolidated the law relat<strong>in</strong>g to trademarks,<br />
<strong>in</strong>dustrial designs, geographical <strong>in</strong>dications, <strong>in</strong>tegrated circuits and patents, to br<strong>in</strong>g the<br />
law <strong>in</strong> l<strong>in</strong>e with the conventions, agreements and laws of WIPO.<br />
7.1 Patents<br />
A law on patents issued <strong>in</strong> October 2000 establishes a facility for the registration and<br />
protection of patents. Patents may be registered for a term of 20 years with Intellectual<br />
Property Department of M<strong>in</strong>istry of Commerce and Industry.<br />
7.2 Trademarks<br />
Royal Decree No. 38/2000 promulgated the law that protects trademarks, trade<br />
<strong>in</strong>formation, trade secrets and trade aga<strong>in</strong>st illegal competition and <strong>in</strong>fr<strong>in</strong>gement.<br />
Trademarks <strong>in</strong>clude words, letters, signatures, draw<strong>in</strong>gs and similar symbols used to<br />
dist<strong>in</strong>guish commodities, products and services. Both local companies and foreign<br />
companies with no physical presence <strong>in</strong> <strong>Oman</strong> may apply to the Department of<br />
Trademarks for trademark protection. Trademarks are protected for renewable ten-year<br />
periods from the date of their registration with the M<strong>in</strong>istry of Commerce and Industry.<br />
7.3 Copyrights<br />
Royal Decree No. 37/2000 promulgated the law on copyrights and related rights.<br />
Copyrights are protected for the lifetime of the author and 50 years thereafter. The<br />
copyright may be registered with Intellectual Property Department, M<strong>in</strong>istry of Commerce<br />
and Industry.<br />
DOING BUSINESS IN OMAN | 41
Chapter 8: Asset Valuation<br />
Fixed assets are recorded at historical cost.<br />
Valuation of assets <strong>in</strong>clud<strong>in</strong>g land, build<strong>in</strong>g, plant and mach<strong>in</strong>ery etc is done by registered<br />
valuers based <strong>in</strong> <strong>Oman</strong>.<br />
The revalued figures may be recorded <strong>in</strong> the books of accounts as per the valuation<br />
report.<br />
Revaluations are ignored for <strong>in</strong>come tax purposes.<br />
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Chapter 9:<br />
Invest<strong>in</strong>g <strong>in</strong> <strong>Oman</strong><br />
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Chapter 9: Invest<strong>in</strong>g <strong>in</strong> <strong>Oman</strong><br />
9.1 Overview<br />
<strong>Oman</strong> is among the few countries <strong>in</strong> the world that are considered progressive and ideal<br />
for long-term <strong>in</strong>vestment. <strong>Oman</strong> possesses a modern <strong>in</strong>frastructure, a grow<strong>in</strong>g <strong>in</strong>dustrial<br />
base, a stable government, f<strong>in</strong>ancial and monetary stability, a freely convertible currency<br />
and, most notably, the <strong>in</strong>stitutions that protects <strong>in</strong>vestors and ensures their access to the<br />
market.<br />
Poised at the entrance to the Arabian Gulf, the source of the world's major oil exports,<br />
<strong>Oman</strong> is <strong>in</strong> the middle of the East-West trade routes, ensur<strong>in</strong>g easy access to markets <strong>in</strong><br />
the Middle East, India, South-East Asia, Africa and Europe.<br />
Membership of various regional associations has further opened up the trade routes.<br />
<strong>Oman</strong>’s membership of the World Trade Organization (WTO) ensures its adherence to<br />
<strong>in</strong>ternational trade norms and practices. <strong>Oman</strong> is also a member of the Indian Ocean Rim<br />
Association for Regional Cooperation, which opens up a potential market of over 1.5<br />
billion consumers. In addition, membership of the Gulf Cooperation Council (GCC)<br />
ensures duty-free export of products with<strong>in</strong> the member countries<br />
Sultanate of <strong>Oman</strong> has worked at creat<strong>in</strong>g the right climate for new <strong>in</strong>vestments by<br />
develop<strong>in</strong>g a free, competitive economy with equal opportunities for all, and shap<strong>in</strong>g laws<br />
and regulations that encourage enterprise. Liberal <strong>in</strong>vestor-friendly policies have been<br />
implemented, while procedures for clearances and approvals have been simplified.<br />
Education and vocational tra<strong>in</strong><strong>in</strong>g have been given priority to ensure that a professionally<br />
tra<strong>in</strong>ed workforce is be<strong>in</strong>g developed. The abundant local labour can be harnessed and<br />
tra<strong>in</strong>ed to specific requirements. In addition, <strong>in</strong>vestors have easy access to a skilled and<br />
discipl<strong>in</strong>ed expatriate workforce.<br />
<strong>Oman</strong> also has a culturally rich and religiously tolerant society. The country has all social<br />
amenities and the traditional hospitality of the land which acts as an added <strong>in</strong>centive for<br />
foreign <strong>in</strong>vestors.<br />
<strong>Oman</strong> is ranked highly by several <strong>in</strong>ternational f<strong>in</strong>ancial <strong>in</strong>stitutions and rank<strong>in</strong>g bodies.<br />
<br />
<br />
In November 2010, the United Nations Development Programme (UNDP) listed<br />
<strong>Oman</strong> as the most improved nation <strong>in</strong> the last 40 years from among 135 countries<br />
worldwide.<br />
<strong>Oman</strong> is ranked 65 out of 183 economies <strong>in</strong> the Economy rat<strong>in</strong>gs by <strong>International</strong><br />
F<strong>in</strong>ance Corporation, a member of the World Bank <strong>in</strong> its publication, “<strong>Do<strong>in</strong>g</strong> <strong>Bus<strong>in</strong>ess</strong><br />
2010 <strong>in</strong> <strong>Oman</strong>”.<br />
44 | DOING BUSINESS IN OMAN
<strong>Oman</strong> is ranked 3rd out of 17 countries <strong>in</strong> the Middle East / North Africa region and<br />
43rd globally, with a score of 67, <strong>in</strong> the <strong>in</strong>dex of Economic Freedom 2009. <strong>Oman</strong>’s<br />
overall scores are above the world and regional averages.<br />
<strong>Oman</strong> has received an ‘A’ long term and ‘A-1’ short term sovereign credit rat<strong>in</strong>g with<br />
a ‘stable’ outlook <strong>in</strong> Standard and Poor’s sovereign rat<strong>in</strong>gs for the year 2009.<br />
Moody’s has given <strong>Oman</strong> an A2 stable rank<strong>in</strong>g <strong>in</strong> its sovereign rank<strong>in</strong>gs.<br />
<strong>Oman</strong> is ranked 25th out of 140 countries on Global Peace Index 2008 – which is an<br />
<strong>in</strong>dicator of peace, economic progress and prosperity.<br />
9.2 <strong>Bus<strong>in</strong>ess</strong> <strong>in</strong>centives for <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> <strong>Oman</strong><br />
The government’s strategy of diversify<strong>in</strong>g the economy is reliant on attract<strong>in</strong>g foreign<br />
direct <strong>in</strong>vestments <strong>in</strong>to the country. The government offers several attractive <strong>in</strong>centives for<br />
foreign <strong>in</strong>vestors <strong>in</strong> certa<strong>in</strong> specified bus<strong>in</strong>ess and <strong>in</strong>dustries as given below.<br />
Income tax<br />
i. Five years tax holiday (renewable)<br />
ii. Tax losses may be claimed aga<strong>in</strong>st future profits with no time limit<br />
iii. No personal Income Tax<br />
Custom duty<br />
Exemption on import of plant, mach<strong>in</strong>ery and raw material for five years from<br />
commencement of production<br />
General<br />
Repatriation of capital and profits of the project.<br />
These <strong>in</strong>centives can be enjoyed by the follow<strong>in</strong>g bus<strong>in</strong>esses and <strong>in</strong>dustries:<br />
i. M<strong>in</strong><strong>in</strong>g <strong>in</strong>dustry<br />
ii. Export of locally manufactured / processed products<br />
iii. Tourism promotion operation of hotels and tourist villages<br />
iv. Production and process<strong>in</strong>g of farm products, poultry farm<strong>in</strong>g<br />
v. Production and process<strong>in</strong>g of animal products and agro <strong>in</strong>dustries<br />
vi. Fish<strong>in</strong>g <strong>in</strong>dustry, fish process<strong>in</strong>g, fish farm<strong>in</strong>g<br />
vii. Public utility projects<br />
viii. Educational <strong>in</strong>stitutes<br />
ix. Hospitals and medical education <strong>in</strong>stitutes<br />
For Industrial <strong>in</strong>stallations, M<strong>in</strong>istry of Commerce and Industry may provide f<strong>in</strong>ancial<br />
<strong>in</strong>centives, subsidised utilities, preferential land allocation and trade promotion <strong>in</strong> addition<br />
to renew<strong>in</strong>g the first five year tax holiday period.<br />
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9.3 <strong>Bus<strong>in</strong>ess</strong> promotion agencies<br />
The M<strong>in</strong>istry of Commerce & Industry<br />
The M<strong>in</strong>istry of Commerce and Industry has set up a ‘one-stop-shop’ to assist <strong>in</strong>vestors<br />
with obta<strong>in</strong><strong>in</strong>g mandatory statutory clearance required to commence bus<strong>in</strong>ess <strong>in</strong> <strong>Oman</strong>,<br />
such as commercial registration from the M<strong>in</strong>istry of Commerce & Industry, registration<br />
with the Chamber of Commerce, and license from the Muscat Municipality or other<br />
regional municipality, required prior to commencement of bus<strong>in</strong>ess.<br />
The <strong>Oman</strong> Chamber of Commerce & Industry (OCCI)<br />
OCCI is the apex representative body of the private sector. OCCI provides economic,<br />
legal, commercial and other consultative support services to <strong>in</strong>vestors; whilst also<br />
promot<strong>in</strong>g bilateral trade and the exchange of technical expertise. Any bus<strong>in</strong>ess that is<br />
commercially registered <strong>in</strong> <strong>Oman</strong> is required to jo<strong>in</strong> OCCI <strong>in</strong> Muscat or a branch <strong>in</strong> other<br />
regions.<br />
<strong>Oman</strong> Centre for Investment Promotion & Export Development<br />
(OCIPED)<br />
The centre was established to promote private entrepreneurship <strong>in</strong> the Sultanate. Its<br />
objective is to boost both local and <strong>in</strong>ternational private sector <strong>in</strong>vestment <strong>in</strong> key<br />
economic sectors and to work <strong>in</strong> partnership with bus<strong>in</strong>esses located <strong>in</strong> <strong>Oman</strong> to enhance<br />
export of <strong>Oman</strong>i goods and services to key global markets.<br />
The Public Establishment for Industrial Estates (PEIE)<br />
PEIE was established by Royal Decree <strong>in</strong> January 1993 with the objective of develop<strong>in</strong>g<br />
and adm<strong>in</strong>ister<strong>in</strong>g Industrial Estates established by the M<strong>in</strong>istry of Commerce and<br />
Industry. PEIE works closely with the M<strong>in</strong>istry of Commerce and Industry, the <strong>Oman</strong><br />
Chamber of Commerce & Industry, OCIPED, other regulatory authorities, and utility<br />
providers to develop partnerships that assure bus<strong>in</strong>ess success. PEIE has been<br />
responsible for develop<strong>in</strong>g and manag<strong>in</strong>g prime <strong>in</strong>dustrial land. All PEIE estates are<br />
suitable for manufactur<strong>in</strong>g, warehous<strong>in</strong>g, distribution and office space. Moreover, it<br />
assists companies <strong>in</strong> assembl<strong>in</strong>g sites, develop<strong>in</strong>g build<strong>in</strong>gs, facilitat<strong>in</strong>g, permitt<strong>in</strong>g and<br />
assess<strong>in</strong>g <strong>in</strong>frastructure needs, review<strong>in</strong>g <strong>in</strong>centives available for projects as well as<br />
help<strong>in</strong>g firms market and promote their products.<br />
Land is available for lease for a period of 25 years (renewable up to 99 years) at the<br />
Industrial Estates.<br />
Export Credit Guarantee Agency (ECGA)<br />
The ECGA operates as the national export credit guarantee agency. It is an entity,<br />
associated with the <strong>Oman</strong> Development Bank, and fully funded by the Government. The<br />
ECGA provides the follow<strong>in</strong>g services:<br />
46 | DOING BUSINESS IN OMAN
i. Export <strong>in</strong>surance coverage to <strong>Oman</strong>i exporters<br />
ii. Assist<strong>in</strong>g exporters to obta<strong>in</strong> f<strong>in</strong>anc<strong>in</strong>g at concessionary <strong>in</strong>terest rates<br />
iii. Facilitat<strong>in</strong>g the grant of pre-shipment f<strong>in</strong>anc<strong>in</strong>g to exporters<br />
iv. Post-shipment f<strong>in</strong>anc<strong>in</strong>g<br />
v. Underwrit<strong>in</strong>g services<br />
9.4 Special zones<br />
Several free trade zones, referred to as ‘free zones’ have been created by Royal Decree;<br />
these zones are regulated by the M<strong>in</strong>istry of Commerce & Industry. The free zones are a<br />
medium <strong>in</strong> the country’s plans to spur the economic growth beyond the oil sector.<br />
Follow<strong>in</strong>g are the major free zones presently <strong>in</strong> operation <strong>in</strong> <strong>Oman</strong>.<br />
Knowledge oasis muscat (KOM)<br />
Knowledge Oasis Muscat is a public-private sector led technology park that is totally<br />
committed to creat<strong>in</strong>g an environment dedicated to support<strong>in</strong>g technology oriented<br />
bus<strong>in</strong>esses. KOM is an ideal environment to grow a high tech company which br<strong>in</strong>gs<br />
together a diversity of enterprises from <strong>in</strong>dustry niche as varied as M-commerce to<br />
<strong>in</strong>ternational call centres.<br />
Salalah free zone<br />
Salalah Free Zone is located near Salalah port which has good world class <strong>in</strong>frastructure<br />
enabl<strong>in</strong>g easy access to the Gulf region, Red sea, Indian Ocean and East Africa.<br />
Al-Mazunah free zone<br />
It has proximity to Yemen border attract<strong>in</strong>g trade opportunities with Yemen. Incentives are<br />
also available for trad<strong>in</strong>g <strong>in</strong> this zone like no visa required between <strong>Oman</strong> and Yemen.<br />
9.5 Bank<strong>in</strong>g and f<strong>in</strong>ance<br />
Central Bank of <strong>Oman</strong> (CBO)<br />
The Central Bank of <strong>Oman</strong> determ<strong>in</strong>es monetary policy. It is also the regulator of <strong>Oman</strong>’s<br />
f<strong>in</strong>ancial sector.<br />
F<strong>in</strong>ancial sector<br />
The f<strong>in</strong>ancial sector comprises commercial banks, specialised banks, non-bank<strong>in</strong>g<br />
f<strong>in</strong>ance and leas<strong>in</strong>g companies and money exchange houses.<br />
Foreign banks have been permitted to operate branch offices and foreign sharehold<strong>in</strong>gs<br />
<strong>in</strong> local banks are encouraged.<br />
DOING BUSINESS IN OMAN | 47
F<strong>in</strong>ance and leas<strong>in</strong>g companies are engaged <strong>in</strong> leas<strong>in</strong>g, hire purchase, debt factor<strong>in</strong>g and<br />
similar credit related activities.<br />
The non-bank<strong>in</strong>g f<strong>in</strong>ancial <strong>in</strong>termediary sector comprises <strong>in</strong>surance companies, public<br />
and private pension funds, capital markets, brokerage companies and the Muscat<br />
Securities Market.<br />
<strong>Oman</strong> Development Bank SAOC<br />
<strong>Oman</strong> Development Bank SAOC was set up to promote and encourage economic<br />
development <strong>in</strong> <strong>Oman</strong>. It provides f<strong>in</strong>ancial as well as technical assistance and advisory<br />
services to small, medium and large projects <strong>in</strong> the fields of manufacture, agriculture,<br />
animal resources, fisheries, tourism, education etc.<br />
The bank has several subsidised loan products for education, health, agriculture, animal<br />
wealth and fisheries, <strong>in</strong>dustrial projects and tourism projects.<br />
9.6 Availability of skilled labour<br />
Skilled manpower <strong>in</strong>clud<strong>in</strong>g professionals from <strong>Oman</strong> and abroad are available <strong>in</strong> <strong>Oman</strong>.<br />
Traditionally the bus<strong>in</strong>ess entities <strong>in</strong> <strong>Oman</strong> have been employ<strong>in</strong>g semi skilled and skilled<br />
manpower from abroad and the need to obta<strong>in</strong> manpower with certa<strong>in</strong> specialised skills<br />
from abroad is still there. The <strong>Oman</strong>i Government has taken necessary steps to employ<br />
<strong>Oman</strong>i nationals with skills to gradually replace workers from abroad.<br />
9.7 <strong>Oman</strong> USA free trade agreement<br />
<strong>Oman</strong> has signed a Free Trade Agreement with United States of America. This<br />
agreement removes barriers for <strong>in</strong>ward <strong>in</strong>vestment from USA and creates ample<br />
opportunities for growth of bus<strong>in</strong>ess and services both ways.<br />
As per the Free Trade Agreement, US citizens and fully US owned companies are<br />
allowed to establish bus<strong>in</strong>ess <strong>in</strong> <strong>Oman</strong> without local <strong>Oman</strong>i participation <strong>in</strong> equity and also<br />
they can own property <strong>in</strong> <strong>Oman</strong>.<br />
48 | DOING BUSINESS IN OMAN
Chapter 10:<br />
List<strong>in</strong>g Rules<br />
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Chapter 10: List<strong>in</strong>g Rules<br />
10.1 Stock exchange<br />
The Muscat Securities Market (MSM) is the Stock Exchange of the Sultanate of <strong>Oman</strong>.<br />
The MSM has been established as a public organization with <strong>in</strong>dependent legal status. It<br />
aims to encourage sav<strong>in</strong>gs and improve <strong>in</strong>vestment awareness as well as protect<br />
<strong>in</strong>vestors. MSM takes on important self-regulatory functions over the brokers and listed<br />
companies, <strong>in</strong> addition to serv<strong>in</strong>g as an exchange house. All <strong>Oman</strong>i Jo<strong>in</strong>t Stock<br />
Companies are required to be members of the MSM and the shares and bonds of Public<br />
Jo<strong>in</strong>t Stock Companies have to be listed there.<br />
The MSM targets to provide a better environment for <strong>in</strong>vest<strong>in</strong>g funds <strong>in</strong> securities and to<br />
consequently realize mutual benefit for the national economy and the <strong>in</strong>vestors. It also<br />
facilitates the trad<strong>in</strong>g of securities issued by Jo<strong>in</strong>t Stock Companies as well as bonds<br />
issued by the Government, commercial companies, <strong>in</strong>vestment fund’s units and any other<br />
domestic or foreign securities agreed upon by the Market<br />
10.2 List<strong>in</strong>g rules<br />
An <strong>Oman</strong>i Jo<strong>in</strong>t Stock Company shall submit a list<strong>in</strong>g application with<strong>in</strong> one month from<br />
the date of registration along with the follow<strong>in</strong>g documents and <strong>in</strong>formation:<br />
i. Certificate of commercial registration and attachments thereto<br />
ii. List of authorized signatories and specimens of their signatures<br />
iii. Copies of company’s memorandum, article of association and the prospectus<br />
iv. An attested copy of the m<strong>in</strong>utes of the constitutive general meet<strong>in</strong>g<br />
v. Any additional requirements the Capital Market Authority may prescribe<br />
The company shall complete the procedure for registration <strong>in</strong> the Commercial Register<br />
with<strong>in</strong> two months from the date of list<strong>in</strong>g.<br />
List<strong>in</strong>g of securities <strong>in</strong> the Market shall be pursuant to the decision of the General<br />
Manager of MSM.<br />
Non-<strong>Oman</strong>i issuers who are desirous of list<strong>in</strong>g their securities <strong>in</strong> the market may file an<br />
application <strong>in</strong> the format prescribed by the Market.<br />
Securities shall be listed <strong>in</strong> the Market as follows:<br />
50 | DOING BUSINESS IN OMAN
Regular market<br />
Shares of companies and units of <strong>in</strong>vestment funds shall be listed <strong>in</strong> this market, subject<br />
to the follow<strong>in</strong>g terms and conditions:<br />
i. The paid-up share capital is not less than RO. 2 million<br />
ii. Shareholders’ equity is not less than the paid-up capital<br />
iii. The company has earned net profits <strong>in</strong> the last two years<br />
iv. The number of days dur<strong>in</strong>g which the shares and units are traded are not less<br />
than 30 trad<strong>in</strong>g days <strong>in</strong> a year and annual turnover of the share or unit is not less<br />
than 5%<br />
Parallel market<br />
Shares of companies and units of <strong>in</strong>vestment funds shall be listed <strong>in</strong> this market <strong>in</strong> case of<br />
the follow<strong>in</strong>g<br />
i. Newly established jo<strong>in</strong>t stock companies and <strong>in</strong>vestment funds<br />
ii. Jo<strong>in</strong>t stock companies and <strong>in</strong>vestment funds whose shareholders’ equity is not less<br />
than 50% of the paid-up capital<br />
iii. Public jo<strong>in</strong>t stock companies and <strong>in</strong>vestment funds who fail to satisfy the<br />
requirements of list<strong>in</strong>g <strong>in</strong> the Regular Market<br />
Third market<br />
Shares of companies and units of <strong>in</strong>vestment funds shall be listed <strong>in</strong> this market <strong>in</strong> case of<br />
the follow<strong>in</strong>g<br />
i. Closed jo<strong>in</strong>t stock companies<br />
ii. Jo<strong>in</strong>t stock companies and <strong>in</strong>vestment funds whose shareholders’ equity is less than<br />
50% of the paid-up capital<br />
iii. Public jo<strong>in</strong>t stock companies and <strong>in</strong>vestment funds who fails to satisfy the<br />
requirements of list<strong>in</strong>g <strong>in</strong> the Regular Market<br />
Bond market<br />
Bonds shall be listed <strong>in</strong> this market segment.<br />
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10.3 Capital Market Authority<br />
In 1998, a new Capital Market Law established the Capital Market Authority (CMA), a<br />
government authority which regulates the issu<strong>in</strong>g of shares and trad<strong>in</strong>g of securities,<br />
supervises the operations of the MSM and supervises all publicly listed companies.<br />
The CMA has developed a Corporate Governance Code and it is also monitor<strong>in</strong>g the<br />
implementation of the Corporate Governance Code. It is now mandatory for public<br />
companies to describe the various measures of Corporate Governance <strong>in</strong> their Annual<br />
Report. The auditors have to separately report on the Corporate Governance of the<br />
Companies.<br />
10.4 Muscat depository & security registration company<br />
This is a Closed Jo<strong>in</strong>t Stock Company (SAOC) established <strong>in</strong> 1999 and is jo<strong>in</strong>tly owned<br />
by the private sector and the MSM. It acts as the sole provider of registration services,<br />
transfer of ownership of securities and safe keep<strong>in</strong>g of ownership documents.<br />
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Chapter 11:<br />
Relevant Websites or Further Read<strong>in</strong>g<br />
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Chapter 11: Relevant Websites or Further<br />
Read<strong>in</strong>g<br />
11.1 Government organizations<br />
M<strong>in</strong>istry of F<strong>in</strong>ance<br />
Information Technology Authority<br />
Telecommunications Regulatory Authority<br />
M<strong>in</strong>istry of Justice<br />
M<strong>in</strong>istry of Transport & Communications<br />
M<strong>in</strong>istry of Regional Municipalities, Environment.<br />
M<strong>in</strong>istry of Tourism<br />
M<strong>in</strong>istry of Education<br />
M<strong>in</strong>istry of Commerce & Industry<br />
M<strong>in</strong>istry of Manpower<br />
Muscat Securities Market<br />
Capital Market Authority<br />
<strong>Oman</strong> Tender Board<br />
<strong>Oman</strong> Chamber of Commerce and Industry<br />
<strong>Oman</strong>i Centre for Investment Promotion<br />
Public Establishment for Industrial Estates<br />
Secretariat General for State Audit<br />
Royal <strong>Oman</strong> Police<br />
Knowledge Oasis Muscat<br />
M<strong>in</strong>istry of Information<br />
www.mof.gov.om<br />
www.ita.gov.om<br />
www.tra.gov.om<br />
www.moj.gov.om<br />
www.motc.gov.om<br />
www.mrmwr.gov.om<br />
www.mot.gov.om<br />
www.moe.gov.om<br />
www.mocioman.gov.om<br />
www.manpower.gov.om<br />
www.msm.gov.om<br />
www.cma.gov.om<br />
www.tenderboard.gov.om<br />
www.chamberoman.com<br />
www.ociped.com<br />
www.peie.om<br />
www.sai.gov.om<br />
www.rop.gov.om<br />
www.kom.om<br />
www.omanet.om<br />
54 | DOING BUSINESS IN OMAN
Chapter 12:<br />
Contacts<br />
DOING BUSINESS IN OMAN | 55<br />
Muttrah <strong>Bus<strong>in</strong>ess</strong> District<br />
Office of George Mathew & Co<br />
<strong>RSM</strong> Correspondent firm <strong>in</strong> <strong>Oman</strong>
Chapter 12: Contacts<br />
12.1 About <strong>RSM</strong> <strong>International</strong><br />
<strong>RSM</strong> <strong>International</strong> is a worldwide network of <strong>in</strong>dependent account<strong>in</strong>g and consult<strong>in</strong>g firms.<br />
<strong>RSM</strong> <strong>International</strong> and its member firms are separate and <strong>in</strong>dependent legal entities.<br />
<strong>RSM</strong> <strong>International</strong> does not itself provide account<strong>in</strong>g or consultancy services. All such<br />
services are provided by members practis<strong>in</strong>g on their own account.<br />
<strong>RSM</strong> <strong>International</strong> is represented by <strong>in</strong>dependent members <strong>in</strong> 83 countries and br<strong>in</strong>gs<br />
together the talents of more than 32,500 <strong>in</strong>dividuals <strong>in</strong> over 700 offices worldwide.<br />
The network’s total fee <strong>in</strong>come of US$3.9bn places it amongst the top six <strong>in</strong>ternational<br />
account<strong>in</strong>g organisations worldwide. Member firms are driven by a common vision of<br />
provid<strong>in</strong>g high quality professional services, both <strong>in</strong> their domestic markets and <strong>in</strong> serv<strong>in</strong>g<br />
the <strong>in</strong>ternational professional service needs of their client base.<br />
<strong>RSM</strong> <strong>International</strong> is a member of the Forum of Firms. The objective of the Forum of<br />
Firms is to promote consistent and high quality standards of f<strong>in</strong>ancial and audit<strong>in</strong>g<br />
practices worldwide.<br />
<strong>RSM</strong> <strong>International</strong><br />
Executive Office<br />
11 Old Jewry<br />
London EC2R 8DU<br />
United K<strong>in</strong>gdom<br />
Telephone: + 44 (0) 20 7601 1080<br />
Fax: + 44 (0) 20 7601 1090<br />
Email: rsmcommunications@rsmi.com<br />
Website: www.rsmi.com<br />
56 | DOING BUSINESS IN OMAN
<strong>RSM</strong> Contacts<br />
<strong>RSM</strong> <strong>International</strong> Executive Office<br />
Chief Executive Officer - Jean Stephens<br />
Tel: +44 20 7601 1080<br />
Email: jean.stephens@rsmi.com<br />
<strong>RSM</strong> Correspondent firm <strong>in</strong> <strong>Oman</strong>:<br />
George Mathew & Co.<br />
<strong>International</strong> Contact - George Mathew<br />
Tel: +968 24708626 / 24795995<br />
Email: gmandco@omantel.net.om<br />
Regional liaisons<br />
Africa<br />
Regional Contact - Clive Betty<br />
Tel: +27 11 329 6000<br />
Email:clive.betty@jhb.rsmbd.co.za<br />
North America<br />
Regional Contact - Frank LeBihan<br />
Tel: +1 312 634 3400<br />
Email: frank.lebihan@mcgladrey.com<br />
South America<br />
Regional Director - Bob Burdett<br />
Tel: +1 312 375 7143<br />
Email: robert.burdett@rsmi.com<br />
Europe<br />
Regional Director - Robert Coles<br />
Tel: +44 20 7601 1096<br />
Email: robert.coles@rsmi.com<br />
Asia Pacific<br />
Regional Director - Neil Hough<br />
Tel: +61 3 9286 1862<br />
Email: neil.hough@rsmi.com.au<br />
Middle East<br />
Regional Contact - Shuaib A. Shuaib<br />
Tel: +965 2296 1000<br />
Email: shuaib.shuaib@albazie.com<br />
Details of other <strong>RSM</strong> contacts at the <strong>International</strong> Executive Office and contact details for<br />
all <strong>RSM</strong> member and correspondent firms are available at the <strong>RSM</strong> <strong>International</strong> website:<br />
www.rsmi.com<br />
DOING BUSINESS IN OMAN | 57
12.2 About local <strong>RSM</strong> correspondent firm<br />
George Mathew & Co<br />
George Mathew & Co. is a firm of Chartered Accountants operat<strong>in</strong>g <strong>in</strong> the Sultanate of<br />
<strong>Oman</strong> s<strong>in</strong>ce 1988, provid<strong>in</strong>g a comprehensive range of services <strong>in</strong> audit, account<strong>in</strong>g, tax,<br />
consult<strong>in</strong>g and risk management services. It is one of the few audit firms <strong>in</strong> the Sultanate<br />
of <strong>Oman</strong> accredited with the Capital Market Authority of <strong>Oman</strong> which entitles the firm to<br />
act as statutory auditors of public jo<strong>in</strong>t stock companies, <strong>in</strong>vestment funds, licensed<br />
companies operat<strong>in</strong>g <strong>in</strong> the securities market and <strong>in</strong>surance companies registered <strong>in</strong> the<br />
Sultanate of <strong>Oman</strong>.<br />
George Mathew & Co is a correspondent firm of <strong>RSM</strong> <strong>International</strong>, the 6th largest<br />
network of <strong>in</strong>dependent account<strong>in</strong>g and consult<strong>in</strong>g firms worldwide, with over 700 offices<br />
<strong>in</strong> 83 countries, and more than 32,500 people on hand to serve your needs.<br />
The office address and location are:<br />
Postal Address:<br />
George Mathew & Co.<br />
P.O. Box 1488, Muttrah, PC 114<br />
Sultanate of <strong>Oman</strong><br />
<strong>International</strong> Contact: George Mathew<br />
Email: gmandco@omantel.net.om<br />
Telephone: +(968) 24708626 / 24795995<br />
Telefax: +(968) 24794350<br />
Website: www.gmc-om.com<br />
Office Location:<br />
George Mathew & Co.<br />
7th floor, Build<strong>in</strong>g No.37<br />
Muttrah <strong>Bus<strong>in</strong>ess</strong> District<br />
Muscat,<br />
Sultanate of <strong>Oman</strong><br />
58 | DOING BUSINESS IN OMAN
DOING BUSINESS IN OMAN | 1
George Mathew & Co.<br />
7th floor, Build<strong>in</strong>g No.37, Muttrah <strong>Bus<strong>in</strong>ess</strong> District<br />
P.O. Box 1488, Muttrah, PC 114, Muscat, Sultanate of <strong>Oman</strong><br />
Tel: +968 24708626 / 24795995; Telefax: +968 24794350<br />
E Mail: gmandco@omantel.net.om; Website: www.gmc-om.com.<br />
<strong>RSM</strong> <strong>International</strong><br />
Executive Office, 2nd Floor, 11 Old Jewry, London EC2R 8DU, UK<br />
T: +44 (0)20 7601 1080 F: +44 (0)20 7601 1090<br />
E: rsmcommunications@rsmi.com<br />
The aim of this publication is to provide general <strong>in</strong>formation about do<strong>in</strong>g bus<strong>in</strong>ess <strong>in</strong> <strong>Oman</strong> and<br />
every effort has been made to ensure the contents are accurate and current. However, tax<br />
rates, legislation and economic conditions referred to <strong>in</strong> this publication are only accurate at<br />
time of writ<strong>in</strong>g. Information <strong>in</strong> this publication is <strong>in</strong> no way <strong>in</strong>tended to replace or supersede<br />
<strong>in</strong>dependent or other professional advice. Copies of this booklet or additional <strong>in</strong>formation can be<br />
obta<strong>in</strong>ed from the <strong>RSM</strong> <strong>International</strong> Executive Office or George Mathew & Co.<br />
<strong>RSM</strong> <strong>International</strong> is the brand used by a network of <strong>in</strong>dependent account<strong>in</strong>g and consult<strong>in</strong>g<br />
firms. Each member of the network is a legally separate and <strong>in</strong>dependent firm. The brand is<br />
owned by <strong>RSM</strong> <strong>International</strong> Association. The network is managed by <strong>RSM</strong> <strong>International</strong><br />
Limited. Neither <strong>RSM</strong> <strong>International</strong> Limited nor <strong>RSM</strong> <strong>International</strong> Association provide<br />
account<strong>in</strong>g or consult<strong>in</strong>g services. The network us<strong>in</strong>g the brand <strong>RSM</strong> <strong>International</strong> is not itself a<br />
separate legal entity of any description <strong>in</strong> any The network is adm<strong>in</strong>istered by <strong>RSM</strong> <strong>International</strong><br />
Limited, a company registered <strong>in</strong> England and Wales (company number 4040598) whose<br />
registered office is at 11 Old Jewry, London EC2R 8DU. Intellectual property rights used by<br />
members of the network <strong>in</strong>clud<strong>in</strong>g the trademark <strong>RSM</strong> <strong>International</strong> are owned by <strong>RSM</strong><br />
<strong>International</strong> Association, an association governed by articles 60 et seq of the Civil Code of<br />
Switzerland whose seat is <strong>in</strong> Zug.<br />
© <strong>RSM</strong> <strong>International</strong> Association, 2011