Oman’s Economic Stimulus Plan built on five pillars

Oman’s Economic Stimulus Plan built on five pillars

(A) Incentives pertaining to taxes and fees are stated in the Plan as follows: Taxes:1. Exemption from the Income Tax shall be granted to all firms that undertake their business activities within the Economic Diversification Sectors for five years, right from 1 January 2021 till the end of 2022, in accordance with the terms and conditions to be announced by the Tax Authority (with effect from the date of the firms' registration in the Commercial Register). 2. Exemption of hotel establishments from the Income Tax due for the two tax years of 2020 and 2021. 3. Permission for the settlement of the due income tax and waiving of the additional income tax (for 2021) ensuing from the segmentation of taxpaying (paying by installments). 4. Deduction of 1% of the value of the due tax, to a maximum of OMR10, 000 from the announced tax based on tax declaration for the next year. This applies to all those who adhere to the presentation of tax declaration and process due tax payments within the deadlines stated in the law. 5. Continued suspension of the application of the Withholding Tax related to the distribution of dividends on shares and interests for five years