There are an array of incentives used to encourage investment attraction, these include, though are not limited to, the provision of land at competitive lease rates in specific locations, reduced utility charges and exemption from taxes.
Exemptions from corporate tax and customs duties are granted to entities engaged in manufacturing, mining, agriculture, fishing, fish farming, fish processing and aquaculture, animal breeding, tourism and the export of manufactured and processed products and public utilities. Exemptions are granted for five years from the date of production or services first rendered. A five-year extension may also be granted subject to conditions.
Foreign airlines and shipping companies are also exempt from taxation based on reciprocal treatment. Universities and tertiary institutes, private sector-run schools, training institutes and private hospitals are exempt from tax.
The Sultanate also offers 100% foreign ownership with approval of Ministerial Cabinet. Moreover, and in accordance with Oman’s commitment to the World Trade Organization, approvals are granted for foreign ownership of up to 70% in most sectors on an automatic basis.
As per the Foreign Capital Investment Law, the Ministry of Commerce & Industry grants licenses to applicants with a minimum paid up capital of RO150,000 (US$390,000).