Oman offers five-year tax relief for maritime sector

Dubai: Oman’s Tax Authority has announced a major five-year suspension of withholding tax on service contracts for vessels registered under the Omani flag, a move aimed at strengthening the nation’s maritime industry.

According to Oman News Agency, the relief applies from September 1, 2025 through August 31, 2030. It is expected to enhance Oman’s position in the global maritime sector by reducing operational burdens for shipping companies.

The tax relief specifically targets service contracts performed aboard vessels that have Omani nationality and are officially registered with the country’s competent authorities.

Boosting the maritime industry

The Tax Authority has urged all maritime enterprises to take advantage of the initiative, anticipating that it will lower operational costs and encourage business growth within Oman’s expanding maritime sector.

Supporting investment and vessel registration

Hossam bin Hamad Al Maamari, Director of the Tax Policy Department, said the move is part of the Authority’s broader strategy to improve the investment climate and support key economic sectors.

"This decision will directly address the needs of the maritime transport industry while encouraging vessel registration under the Omani flag and attracting specialized investments to Oman’s shipping sector," Al Maamari stated.