Incentives in Salalah
Recent Tax DevelopmentsRoyal Decree 70/2024 on 31 December 2024 that introduces a Top-up TaxSource: PwC Worldwide Tax Summaries
Free Zone: Al Mazunah Free ZoneExemption of profits from income tax for 30 years; exemption from customs duties; 100% ownership of the invested project’s capital; no minimum investment requirement; exemption from the law of commercial agenciesSource: OPAZ — Al Mazunah Free Zone
| Corporate Income Tax | 15% standard; 3% for qualifying SMEs; 55% oil and gas Source: PwC Worldwide Tax Summaries |
|---|---|
| Personal Income Tax | None until 2028; then 5% on income above OMR 42000/year Source: PwC Worldwide Tax Summaries |
| VAT | 5% (since April 2021) Source: PwC Worldwide Tax Summaries |
| Withholding Tax | 10% on services royalties interest to non-residents Source: Oman Tax Authority |
| Recent Tax Developments | Oman becomes the first GCC state to introduce personal income tax — 5% on annual income above OMR 42,000 from 1 January 2028. It has adopted the OECD Income Inclusion Rule and has 37 tax treaties. Source: PwC Worldwide Tax Summaries |
| Free Zone: SALALAH | 100% foreign ownership; 30-year tax holiday; no customs duties; relaxed Omanisation Source: Salalah Free Zone Company / OPAZ |
| Free Zone: Al Mazunah Free Zone | 30-year tax holiday; 100% foreign ownership; Yemeni nationals work without visa/permit; land trade hub for Yemen and East Africa Source: OPAZ / Al Mazunah Free Zone [listed under Salalah — nearest hub in its governorate] |