Oman has started the implementation of the new tax law which would work on improvement of the economic situation and lure more foreign investment. The new law supports the Sultanate"s aspirations to attract foreign companies to the Omani market, encourage competition, establish the principles of tax equity, efficiency, and transparency, the Secretary General of Taxation at the Omani Finance Ministry Saud bin Nasser Al-Shukaili said on Tuesday. The tax rate of 12 percent was made applicable to all companies incorporated in Oman, irrespective of the nationality of the shareholders, he was quoted as saying by KUNA. The tax revenues of 2009 increased to 300 million Omani Riyals (OMR) compared to OMR 236 million in 2008, he said. The new tax law conforms with requirements of the present stage after Oman"s signing on the Free Trade Agreement with the United States and Oman"s membership in the World Trade Organization Agreement, Al-Shukaili added. The new tax law meets the terms of the international taxation regime, he said, noting that the law is to be applied only on companies not individuals.
