Muscat: Tax Authority has introduced a significant five-year suspension of withholding tax on service contracts for vessels registered under the Omani flag, marking a strategic initiative to strengthen the nation’s maritime sector. The measure, effective from 1 September 2025, through 31 August 2030, represents a targeted approach to enhancing Oman’s position in the global maritime industry.

According to Oman News Agency, Hossam bin Hamad Al Maamari, Director of the Tax Policy Department, stated that this regulatory development forms part of the Authority’s comprehensive strategy to improve the investment climate and support key economic sectors. “This initiative directly addresses 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.

The tax relief applies specifically to service contracts performed aboard vessels that have obtained Omani nationality and are formally registered with Oman’s competent authorities. The suspension is expected to reduce operational burdens for maritime companies while supporting the sector’s expanded contribution to the national economy.

The Tax Authority has encouraged all maritime sector enterprises to utilize this initiative, anticipating that the measure will lower operational costs and stimulate business expansion within Oman’s growing maritime industry.