Doing Business in Oman 2013

DOING BUSINESS IN
OMAN 2013
March 2013

FOREWORD
The Sultanate of Oman has made great progress and has witnessed tremendous economic
growth, stability and prosperity in the last 40 years, that makes it an outstanding venue
for doing business in the region. Sound economic policies and its strategic location have
enabled Oman to attract foreign investments in a wide variety of industries.
The Oman Chamber of Commerce and Industry encourages economic growth in the
Sultanate through active participation in the development plans and initiatives undertaken
to diversify resources to enhance the GDP. OCCI along with other investment promotion
authorities, regulatory authorities and utility providers plays a crucial role in highlighting
Oman as an international business and services hub.
OCCI makes every effort to provide its services to different regions and governorates of
the Sultanate for the convenience of traders and investors through a network of branches.
The branches complement the work of the Chamber at its headquarters in Muscat.
I welcome this edition of Doing Business in Oman by BDO which provides up to date
information on the essential requirements for undertaking business activities in Oman.
This publication covers in detail the business environment, financial and tax aspects of
doing business in Oman. It highlights the services of banking, insurance and the incentives
available to the investor. I am confident this publication will be useful for businessmen,
exporters, importers, entrepreneurs as well as foreign investors planning to establish new
commercial activities in the Sultanate.

H.E. Khalil Abdullah Mohammed Al Khonji
Chairman
Oman Chamber of Commerce and Industry

INTRODUCTION
The aim of this publication, which has been prepared for the exclusive use of BDO Member Firms
and their clients and prospective clients, is to provide the essential background information on
setting up and running a business in Oman. It is of use to anyone who is thinking of establishing a
business in Oman as a separate entity, as a branch of a foreign company, or as a subsidiary of an
existing foreign company. It also covers the essential background tax information for individuals
considering coming to work or live permanently in Oman.
This publication describes the business environment in Oman and covers the most common forms of
business entity and the taxation aspects of running or working for such a business. For individual
taxpayers, the important taxes to which individuals are likely to be subject are dealt with in some
detail. The most important issues are included, but it is not feasible to discuss every subject in
comprehensive detail within this format. If you would like to know more, please contact the BDO
Member Firms with which you normally deal, who will be able to provide you with information on
any further issues and on the impact of any legislation and developments subsequent to the date
mentioned below.
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Doing Business in Oman 2012 has been written by the Oman member firm of BDO. Its contact
details may be found at the end of this publication. The publication is up to date to 31 January
2012.
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Contents

FOREWORD
INTRODUCTION
1. THE BUSINESS ENVIRONMENT ........................................................................................ 1
GENERAL INFORMATION .................................................................................................... 1
Geography ........................................................................................................... 1
History ............................................................................................................... 1
Languages ........................................................................................................... 1
Climate .............................................................................................................. 2
Omans renaissance ............................................................................................... 2
Administration ..................................................................................................... 2
Population ........................................................................................................... 2
Religion .............................................................................................................. 2
Foreign relations ................................................................................................... 2
Gulf Co-operation Council ....................................................................................... 3
Legal system ........................................................................................................ 3
Housing and real estate .......................................................................................... 3
Education and medical care ..................................................................................... 4
Transport and communication................................................................................... 4
Media ................................................................................................................. 5
ECONOMY, INDUSTRY AND PRIMARY RESOURCES ........................................................................... 6
Trade ................................................................................................................. 6
Monetary stability ................................................................................................. 6
Economic indicators ............................................................................................... 6
Oil and gas .......................................................................................................... 6
Other industries .................................................................................................... 7
Free zones ........................................................................................................... 7
Banking & insurance ............................................................................................... 7
Tourism and hospitality .......................................................................................... 8
Tender Board ....................................................................................................... 9
Employment ........................................................................................................ 9
Working hours and weekends .................................................................................... 9
International time and business hours ......................................................................... 9
Salaries, wages and benefits .................................................................................. 10
Labor market reform and Omanisation ...................................................................... 10
INVESTMENT IN OMAN .................................................................................................... 10
Attractions ........................................................................................................ 10
Public Authority for Investment Promotion and Export Development (PAIPED) ..................... 11
Brand Oman ....................................................................................................... 11
Business incentives .............................................................................................. 11
2. THE FINANCIAL SYSTEM ............................................................................................. 13
BUSINESS ORGANIZATIONS AND REPORTING REQUIREMENTS ............................................................... 13
Business structures: options available ....................................................................... 13
Business entities ................................................................................................. 13
Public Joint Stock Company (SAOG) .......................................................................... 13
Closed Joint Stock Company (SAOC) ......................................................................... 13
Limited Liability Company (LLC) .............................................................................. 14
General Partnership ............................................................................................. 14
Limited Partnership ............................................................................................. 14
Joint venture ..................................................................................................... 14
Holding company ................................................................................................. 14
Sole proprietorship .............................................................................................. 15
Branch of foreign company .................................................................................... 15
Commercial representative office ............................................................................ 15
Commercial agent ............................................................................................... 15
Governing laws ................................................................................................... 15
Accounting and auditing requirements ...................................................................... 15
Trademarks and intellectual property ....................................................................... 16
Copyrights ......................................................................................................... 16
Stock exchange ................................................................................................... 16
3. THE TAX SYSTEM ..................................................................................................... 18
INCOME TAX ............................................................................................................. 18
Introduction....................................................................................................... 18
Taxable entities .................................................................................................. 18
Tax on Permanent Establishment ............................................................................. 18
Withholding tax .................................................................................................. 18
COMPUTATION OF TAXABLE INCOME ...................................................................................... 19
Method of accounting ........................................................................................... 19
Tax rates .......................................................................................................... 19
Taxable income .................................................................................................. 19
Exemptions ........................................................................................................ 20
Deductible expenses ............................................................................................ 20
Depreciation and disposal of capital assets................................................................. 20
Head office charges ............................................................................................. 21
Interest costs ..................................................................................................... 21
Sponsor's fees ..................................................................................................... 22
Agents fees ....................................................................................................... 22
Related party transactions ..................................................................................... 22
Managerial/partners remuneration .......................................................................... 22
Bad debts .......................................................................................................... 23
Non-deductible expenses ....................................................................................... 23
Carry forward and set off of losses .......................................................................... 24
PROCEDURES ............................................................................................................. 24
Accounting period ............................................................................................... 24
Financial statements ............................................................................................ 24
Tax registration and notification ............................................................................. 24
Principal officer .................................................................................................. 24
Tax returns ........................................................................................................ 25
Tax administration .............................................................................................. 25
Communication and due dates ................................................................................ 25
Assessment ........................................................................................................ 25
Objections and appeals ......................................................................................... 26
Payment of tax ................................................................................................... 26
Double tax avoidance treaties and credit for foreign tax paid ......................................... 26
Tax treaties ....................................................................................................... 26
Penalties........................................................................................................... 27
OTHER TAXES AND DUTIES ............................................................................................... 27
Other taxes ....................................................................................................... 27
Customs duty ..................................................................................................... 27

BDO WORLDWIDE

DOING BUSINESS IN OMAN 2013

DOING BUSINESS IN OMAN 2013 1
March 2013
1. THE BUSINESS ENVIRONMENT
General information
Geography
The Sultanate of Oman, situated at the south-eastern corner of the Arabian Peninsula
covers an area of 309,500 sq km with a 1,700 km coastline overlooking three seas: the
Arabian Gulf, the Gulf of Oman and the Arabian Sea.
The Sultanate of Oman borders Saudi Arabia and the United Arab Emirates in the west; the
Republic of Yemen in the south; the Strait of Hormuz in the north and the Arabian Sea in
the east. The capital of the country is Muscat, which is located in the north of the
country.
The topographical features of Oman consist of deserts, plains and mountains. 82% of the
land area is uninhabitable desert and 15% of the total area comprises mountains. The
remaining 3% is the coastal plain and is the most densely populated area. In the south, the
Dhofar mountain ranges attract the monsoons, which bring about unique weather
conditions and greenery during the Khareef season (July - August).
The country is divided into 9 administrative regions viz., Muscat, Batinah South and North,
Dakhliyah, Dhahirah, Sharqiyah South and North, Wusta, Dhofar, Musandam and Buraimi. It
has 61 provinces known as Wilayats. Each wilayat is governed by a Wali.
History
Oman has a distinct history with a long tradition of entrepreneurship and international
trade. It has age-old maritime traditions dating back to sea-going commerce which
flourished between the 7th and the 15th century A.D when Oman dominated the sea
routes extending as far as Africa to the south, China to the east and Europe to the west.
Archaeological excavations have found evidence of villages as far back as the 6th
millennium B.C, thus indicating the existence of human societies in Oman since the Stone
Age. Oman was a thriving center of commercial activity with trade in copper and
frankincense throughout the Middle Ages. It is for this reason that in 2000 B.C the
Sumerians named the country Magan after the Sumerian word for copper.
Oman embraced Islam during the middle of the 7th century A.D and shortly after came
under the rule of the Ummayyads of Damascus. A century later, the Omanis revolted
against the Ummayyads and elected the Imam Jalanda Bin Masud as their leader. Because
of its key position on lucrative trade routes the Portuguese conquered Muscat in 1507.
Muscat was re-conquered in 1650 by the Imam Sultan Bin Saif Al Yarubi who established
colonial positions in East Africa. In 1744 Ahmed Bin Said, the first ruler of the present Al
Busaidi Dynasty was elected Imam and by the end of the 18th century, the Omanis were in
control of an extensive empire. In the first half of the 19th century, Oman was ruled by
Sayyed Said Bin Sultan and after his death the Omani empire was divided between the two
disputing sons. In the process, Oman was dispossessed of its East African territories.
Since 1970, the country has been ruled by His Majesty Sultan Qaboos Bin Said and during
his visionary reign, the country has undergone rapid and far-reaching economic and social
development while maintaining its cultural heritage and natural environment.
Languages
Arabic is the official language of Oman. English is widely spoken in the business and
Government sectors, although certain official correspondence must be in Arabic. All
Ministerial correspondence and Royal Decrees are published only in Arabic, although
unofficial English translations are available.
A few Indian languages are widely spoken, especially by the expatriate community. Swahili
adds spice to the entire mix of the linguistic landscape.

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Climate
The climate in Oman is generally hot and dry, especially during summer months between
May and August when temperatures go up to 40 degrees centigrade (104 degrees
Fahrenheit). From December to the end of March, it is pleasant with temperatures ranging
from 16 to 32 degrees centigrade (61 to 90 degrees Fahrenheit). Rainfall is generally low
and irregular with the exception of the Dhofar region, which receives monsoon showers
from July to September.
Omans renaissance
His Majesty Sultan Qaboos Bin Said ascended to the royal throne of Oman on 23rd July,
1970. Oman then had little physical or administrative infrastructure and His Majesty Sultan
Qaboos Bin Said requested his countrymen to contribute to the work of nation building.
It is His Majestys progressive outlook and his commitment that has brought Oman out of
its centuries of isolation and made it into a modern state able to command respect on the
geo-political world stage.
Administration
The Head of State is His Majesty Sultan Qaboos Bin Said. The Sultan is the highest and final
authority and the Supreme Commander of the Armed Forces. The Sultan appoints the
members of the Cabinet of Ministers who serve the Government and hold executive
authority. The Sultan authorizes all laws and decrees.
Oman has a bicameral legislature jointly referred to as Majlis Oman (Council of Oman). It
comprises of two chambers viz., Majlis Addawla (Council of State) and Majlis Ashshura
(Consultative Council). The members of the Majlis Addawla are appointed by Royal
Decree. The Council of Oman advises The Sultan on legislative matters.
The Majlis Ashshura consists of elected members representing all wilayats of the
Sultanate. The election of the Majlis Ashshura members is conducted through direct
secret ballot and according to election law. The term of the Majlis Ashshura is four years.
Oman was the first country in the Middle East to allow women to vote and was also the
first country in the Gulf Co-operation Council (GCC) to have a woman Minister.
Population
Omans data from the general census conducted in December 2010 revealed that the total
population of the country is 2.773 million of which 1.957 million (71%) are Omanis and
0.816 million (29%) are expatriates. The majority of the expatriate population is from the
Indian subcontinent and other Asian countries. The highest concentration of population is
in the capital city of Muscat and the Al Batinah region.
Religion
Islam is the official religion of Oman. Omanis are tolerant towards believers of other faiths
who are allowed to practice their religion. Minority groups include Hindus and Christians.
Foreign relations
The Sultanate of Oman has successfully pursued a policy to integrate Oman with the global
community. It is a member of the United Nations and the Arab League. Oman is one of the
founding members of the GCC which was established in 1981. In recent years, the
Sultanate joined the Indian Ocean Rim Association for regional co-operation with the aim
of improving trade links and investment between member countries. Oman is a member of
the World Trade Organization (WTO) and has opened up its markets to foreign investors.
Even though Oman is not a member of the Organization of Petroleum Exporting Countries
(OPEC), it is an observing associate and regularly co-operates with OPEC in stabilizing
international oil prices.

March 2013
Gulf Co-operation Council
The Gulf Cooperation Council was created in 1981. It is a trade bloc comprising 6 Gulf
States: Oman, Bahrain, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates. The
GCC common market was launched in 2008, resulting in all GCC companies and citizens
being treated as 'nationals' in any GCC country, breaking down barriers to cross-border
investment and trade.
As a member of the GCC, Oman extends certain privileged rights to citizens and companies
from other member countries and these are:
General exemption from custom duty on imports of GCC origin
Preference in government tenders for products originating in GCC
GCC nationals are given equivalent status to Omani nationals establishing legal
entities
GCC nationals working in private sector in Oman are treated in par with the local
nationals
Ownership of land in certain area where GCC nationals enjoy advantages denied to
other non-Omanis.
Legal system
In 1996, a Royal Decree promulgated the Basic Law of the State. In October 2011, certain
amendments were introduced by a Royal Decree 99/2011. The law has 7 chapters and 81
articles dealing with every aspect of the State Apparatus and fundamental human rights.
The Basic Law guarantees the equality of all citizens before the law, freedom of religion,
freedom of speech, a free press and the right to a fair trial. It lays down a legal
framework for all future legislation.
The Islamic code Sharia is the basis for Omani legislation. However, Oman has developed
a substantial body of written law to regulate its economic affairs. The Sultan promulgates
laws through Royal Decrees, and Ministerial Decisions are issued to amplify the laws and
provide necessary details for their implementation. The Royal Decrees and Ministerial
Decisions are published in the Official Gazette.
The Basic Law confirms the independence of the judiciary and the role of the judges in
upholding the rule of law and guaranteeing rights and freedoms. The country has the
following structure for the judiciary:
District Courts: deal with minor criminal cases, labour disputes and small civil and
commercial cases.
Primary Courts: deal with more serious criminal cases and all other civil, commercial and
personal affair cases.
Court of Appeal: hears only appeal cases.
Supreme Court: is the final deciding authority on points of law.
Within the above courts there are separate circuits for personal affairs termed as Sharia
cases, criminal cases and civil and commercial cases. In addition, there is a Court of
Administrative Jurisdiction which specialises in cases relating to Government employees
and reviews of administrative decisions.
Labour disputes are handled by the Ministry of Manpower, and if there is no settlement
the matter is referred to the District Court/Primary Court.
Housing and real estate
Commercial and residential lease rates have both increased tremendously in the last few
years, largely resulting from the increased demand in both the residential and commercial
sectors. Oman has created Integrated Tourism Complexes (ITC) that enables foreigners to
buy freehold property and receive Omani residency visas for themselves and their

March 2013
relatives. Examples of ITC are The Wave and The Muscat Hills. A number of Omani towns
such as Sohar, Buraimi, Nizwa and Sur are on the threshold of the tourism and real estate
boom, positioning Oman as one of the best tourist and business destinations in the region.
Education and medical care
Education in Oman has been given a very high priority with the overall objective of
creating a well educated and trained national workforce so as to curtail dependence on
expatriate workers in the future. The progress made in the area of education has been
remarkable, with schools spread throughout the length and breadth of the country.
Starting from just three schools in the 1970s, the Sultanate now has over 1,000 schools
for both boys and girls. From 909 students and 30 teachers, the student population has
gone up to over 600,000 students and 45,000 teachers. Provision of education up to the
school level is the responsibility of the Ministry of Education. The country also has schools
run by the private sector and various schools run by expatriate communities for their own
nationals.
The Ministry of Higher Education is responsible for college and university education. The
Sultan Qaboos University was established in 1986. It has at present over 10,000 students
pursuing higher education in arts, medicine, agriculture, engineering, commerce and
Islamic studies. The country also has a private sector university which was established in
Sohar.
Two new universities in Nizwa and Dhofar are also taking shape. A joint-Omani-German
University has also been set up. The private sector is also active in higher education and
there are 8 private sector colleges under the Ministry of Higher Education.
Vocational training is provided to Omanis by the Ministry of Manpower through
Government technical colleges located in various parts of the country. There are also
several private training institutes.
Oman maintains one of the most extensive healthcare services in the Arab World, with
many Government hospitals and clinics throughout the country. There are three major
hospitals in Muscat, all of which have 24 hour emergency services. Several private
hospitals have also been set up around the country in recent years. The quality of medical
care is considered to be excellent, with senior physicians usually trained in Europe or the
United States.
Preventive medical care, including malaria control, tuberculosis and anti-trachoma
programs, is expanding. Private hospitals and clinics have now been given a boost and the
expatriate population generally uses the private medical facilities.
Transport and communication
Air: At present, Muscat International Airport is the only international airport in Oman. The
Sultanate has civil airports at Salalah and Khasab. Salalah airport also caters to a few
international flights. Four new domestic airports at Sohar, Duqm, Ras Al Hadd and Adam
are under development. Muscat International Airport and the Salalah Airport are currently
undergoing major expansion.
Muscat International Airport can handle the largest commercial and cargo aircraft. More
than two dozen different airlines operate through Muscat, and the airport handled a total
of 5.75 million passengers during 2010.
Oman Air is the national carrier of the Sultanate of Oman. It operates to more than 40
destinations worldwide. It has been rated as the best business class carrier in the world.
Roads: Oman has developed a network of highways linking almost all parts of the country
and also the UAE by road. The road from Muscat to the UAE, which is 450 km long, is a
dual carriageway and is fully lit. There is a major highway connecting Muscat to Salalah
which is more than 1,000 kms away. Oman is committed to developing its own domestic

March 2013
rail network and also participating in inter-regional rail links.
The Oman National Transport Company operates buses on local, interior and long distance
routes as far as Salalah, Dubai and Abu Dhabi. Private operators also provide long distance
bus travel.
Public and private taxis operate throughout the country. Cars and mini buses operate on
an engage and sharing basis. International car rental companies such as Rent-a-Car,
Thrifty, Avis, Hertz, Budget, etc. also operate in Oman.
Shipping: Port Sultan Qaboos in Muscat, the Salalah Port and the Port of Sohar are the
premier sea ports which are operational in Oman. Port Sultan Qaboos was established in
1974 and has been vital for the development of Oman. It has recently added a passenger
terminal and become a port of call for many luxury cruise liners. In the near future, Port
Sultan Qaboos will continue to support lighter commercial operations, and the ports
shipyard will be converted into docking space for cruise ships. Port of Sohar is expected to
take on the bulk of Port Sultan Qaboos commercial business.
The Salalah container terminal first began operating at Port Raysut (later renamed the
Port of Salalah), in November 1998. In the few years since its inception, the Port has
developed into one of the worlds largest and most sophisticated container terminals.
The Port of Sohar, located just before the Strait of Hormuz, is within easy reach of the
booming economies of the Gulf and the Indian subcontinent, with great connectivity to
Abu Dhabi, Dubai, Al Ain and Muscat. The Port of Sohar has developed into a world-class
port, capable of receiving ships with a draught of up to 18 metres. The Port of Sohar will
be linked by the railway to the internal container depot being developed at Barka.
Duqm port, located in central-eastern Oman, is being developed as a new port, whose first
phase will be completed in 2012. Duqm port is an integral part of the effort to turn
Omans central Al Wusta region into a major transport and industrial center.
Post and Telecommunication services: Post offices are spread all over the country and
the postal service is operated by Oman Post, a wholly government-owned company. At
present there are 94 post offices and 59,000 post boxes for use by individuals and
commercial establishments. Mail is also handled by private operators such as DHL, FedEx
and Aramex.
Telecommunications services are well organized in the Sultanate of Oman. The country
has facilities for fixed line telephones, mobile telephones and internet services. Omantel
and Nawras are the countrys primary telecom operators. In addition, there are 5 mobile
re-sellers. The Telecommunication Regulatory Authority regulates telecommunications
services in Oman.
The international dialing code for Oman is 968, and the international access code for
international calls is 00. Oman has roaming facilities in most of the countries of the world
for its mobile network.
Media
Oman currently has more than 83 publications of which 9 are daily newspapers. There are
5 daily Arabic newspapers (Al Watan, Al Shabiba, Oman, Al Zamn and Al Roya) and 4
English language daily newspapers (Oman Observer, Times of Oman, Oman Tribune and
Muscat Daily). Foreign newspapers and magazines in all languages including economic and
financial magazines are easily available all over the country.
Oman Television is the sole broadcasting media. Oman TVs broadcasts are transmitted
through a network of stations spread across the country. It has also recently launched its
Channel 2. Facilities are available to residents for private channels like Pehla, Orbit and
NileSat offering TV programs in various languages.

March 2013
Oman has two radio stations: Radio Sultanate of Oman and Hala. English FM programs are
broadcast daily from Muscat and Salalah.
Economy, Industry and Primary Resources
Trade
Oman is an exporter of oil and natural gas, although it is not a member of the
Organization of Petroleum Exporting Countries. Oman is a moderate Islamic country which
has sought to maintain good relations with all countries in the Middle East. It also has a
170 years history of political and economic cooperation with the United States and the
United Kingdom, and has supported the U.S. war on terrorism.
Though Omans proven oil reserves are limited compared to some of the OPEC countries,
almost half of the countrys GDP, two-thirds of its export earnings and three quarters of
its Government revenues currently come from oil revenues. The Sultanate is therefore
trying to liberalize and diversify its trade regime as it seeks to broaden economic
opportunities for a fast-growing workforce. As a result, it is looking to expand its economy
beyond oil and gas exports.
Oman, as a member of the GCC, has free trade relations with GCC countries. The Oman-
USA FTA, under which all tariffs on consumer and industrial products are waived, came
into effect on 1 January 2009. An FTA with the European Union is also expected soon.
These FTAs would effectively help to promote an attractive investment climate, and
expand trade in products and services between the participating countries.
Monetary stability
Efforts to ensure monetary stability in Oman have proven effective, with low inflation
rates. The Omani Rial (RO) is a freely convertible currency, and is pegged to the US Dollar
at the rate RO 0.385. The Central Bank of Oman (CBO) is responsible for the issue and
circulation of currency and foreign exchange, maintaining the value of the currency and
ensuring overall monetary stability.
The unit of currency, the Omani Rial, is divided into 1,000 Baizas. The Omani Rial is
available in denominations of 50, 20, 10, 5 and 1 currency notes, while Baizas are issued in
100 and 500 Baiza notes and 50, 25, 10 and 5 Baiza coins. Cash is the preferred method of
payment, but most of the medium and large shops accept credit cards. Currency can be
exchanged at banks and money exchanges.
Economic indicators
Oman has achieved impressive growth in GDP, which has soared from RO 105 million in
1970 to RO 22.24 billion in 2010. The Per Capita Income stood at RO 8,020. The Omani
economy is dependent on the production of oil and gas, which contributes about 46% of
the countrys GDP. The fluctuations in the price of oil therefore result in large changes in
Government revenue, exports and GDP.
The following figures provide the economic indicators for the Sultanate of Oman:
Nominal GDP Growth Rate 25% (2010)
GDP RO 22.24 billion (2010)
Exports RO 14.07 billion (2010)
Imports RO 7.68 billion (2010)
Trade Surplus RO 6.39 billion (2010)

Oil and gas
Following the commercial exploration of oil in the middle of the 1970s, the structure of
the economy started witnessing a noticeable transformation, where the oil sector became
the mainstay of the economy and the main source of income.

March 2013
There are 8 crude oil companies operating in Oman, and Petroleum Development of Oman
is the major oil producing company. Other oil companies in Oman are Occidental, Japex,
Novus and PetroGas. Oman currently produces 865,000 barrels per day. Oman has its own
oil refineries located at Mina Al Fahl and Sohar.
Oman produced 33 million cubic meters of natural gas in 2010, accounting for RO 912
million in the overall GDP. The majority of the natural gas produced is exported.
Other industries
Omans industrial sector started in 1975 with an immediate target of import substitution.
Even today, most of the products manufactured in Oman are consumer products. The
Government has consistently encouraged the growth of the industrial sector by providing
infrastructure like electricity, means of communication, etc. The Industrial Estate
Authority was established in an attempt to attract the private sector. The Rusayl Industrial
Estate was the first one to be set up and, today, there are 7 industrial estates throughout
the Sultanate operating under the aegis of the Public Establishment for Industrial Estates
(PEIE). The Government has played the role of a catalyst for the private sector to invest in
manufacturing industry.
The manufacturing sector, which was contributing 4.6 per cent of GDP in 1996, has been
set a target of 15 per cent of GDP (in real terms) for Vision 2020. Industry focus too has
graduated from import substitution to diversification. Diversification to a non-oil based
economy is a national priority.
Free zones
In a bid to accelerate diversification and development of the economy, several free trade
zones have been created, and these zones are regulated by the Ministry of Commerce and
Industry. The following Free Zones are currently in operation in Oman:
Salalah Free Zone is located near Salalah port with world class infrastructure, enabling
easy access to the Gulf region, Red Sea, Indian Ocean and East Africa. The incentives
consist of a 50 year lease (renewable), 100% foreign ownership, Zero custom duty, a 30
year tax holiday, 10% Omanisation and fast track customs and handling and processing.
Knowledge Oasis Muscat (KOM) is a technology park located at Rusayl and created with
state of the art infrastructure, to create an environment to support technology-oriented
businesses. The incentives consist of tax and import duty concessions and duty-free access
to GCC states.
Al Mazunah Free Zone attracts trade opportunities with Yemen. Incentives are tax and
import duty concessions and duty-free access to GCC states.
Sohar Free Zone has been awarded the governments mandate to manage and develop
the 4,500-hectare greenfield site as a free zone which will offer a number of incentives for
investors. Integrated with the free zone is a multi-modal transport infrastructure
comprising the Port of Sohar, Sohar Airport (currently under construction) and a planned
rail port. The free zone will set the stage for local and foreign small and medium sized
enterprises (SMEs) who wish to take advantage of Sohars booming industrial clusters and
its modern transport infrastructure.
Banking & insurance
Omans financial sector includes a diversified commercial banking system, financial
institutions and a securities market. The continuous liberalization and modernization of
financial institutions and capital markets are among the main objectives of the Sultanate.
Omans financial institutions can be divided into two categories - monetary institutions
and other financial institutions. They are the Central Bank of Oman, Commercial banks
and Specialized banks.

March 2013
The Central Bank of Oman, established in 1974, determines monetary and credit policies
under the direction of the Monetary Board. The CBO supervises local commercial banks,
specialized banks, finance and leasing companies and money exchange houses. The
framework also covers areas such as capital adequacy, asset quality, management of
investment accounts, corporate governance and liquidity management. It also serves as
the Governments bank, as a bank of the last resort and as an issuer of currency. The
CBO headquartered in Muscat has two branches, one in Salalah and other in Sohar.
Commercial banks: As against three commercial banks operating only in the capital area in
the early 1970s with a total of seven branches, there are now 19 commercial banks (as at
the end of 2010) of which 7 are locally incorporated and 10 are branches of foreign banks,
and 2 specialized banks, together having a branch network of 466 branches. Local banks,
in addition, have 11 branches and one representative office abroad. The share of foreign
banks in the total banking system assets was relatively small at about 12%. The 3 largest
local banks accounted for about 60% of total assets, 57% of total deposits and 63% of total
credit, and had combined assets of RO 9.43 billion. Total assets/liabilities of the
commercial banks rose to RO 15.65 billion in 2010, representing an increase of 10.2%
compared with 2009.
The Central Bank of Oman regulates all commercial bank activities under Royal Decree No
(7/1974). The bulk of its lending activity consists of short term loans or discounts.
Specialized banks: As at the end of 2010, there were 2 specialized banks in operation.
They are Oman Housing Bank and Oman Development Bank, and both are owned by the
Government. The specialized banks operate with a network of 22 branches.
Other financial service providers: There were also 6 finance and leasing companies
licensed by the Central Bank, engaged in hire-purchase activities, leasing, debt factoring
and similar credit-based functions. They had 33 branches, all within the country. At the
end of December 2010, money exchange establishments stood at 31, out of which 16
operated under licenses for money changing and draft issuance business. The 16 fully
fledged exchange establishments had 164 branches.
Oman Development Bank (ODB): ODB provides financial support to Omani companies for
projects in the fields of agriculture, fisheries, manufacturing, export, tourism, education,
health, traditional crafts, professional practices, and workshops, in addition to other fields
as deemed necessary by the Council of Ministers.
Oman Housing Bank: The objective and aim of the Housing Bank is to support the housing
sector by providing soft loans, mainly to low and middle-income Omanis to construct,
purchase, expand or complete residential properties.
Islamic banking: Oman has recently permitted Islamic banking. Two specialist banks
offering this are being set up, and some of the existing commercial banks will have Islamic
banking windows. The CBO has appointed consultants to formulate procedures for setting
up Islamic banking.
Tourism and hospitality
The Government has recognized tourism as an important area for future economic growth.
The country offers a beautiful landscape which includes beaches, mountains, deserts and
wadis. It also has several forts and palaces which offer tremendous scope for the growth
of tourism.
In order to provide a major thrust to tourism, a separate Ministry, known as The Ministry
of Tourism, was set up in 2004. The Government has also established a separate company
named Omran, to deliver major projects and to manage assets and investments in the
tourism sector.
The Ministry of Tourism is also seeking private sector participation in promoting tourism. A
Ministerial decision creating Integrated Tourism Complexes enables foreigners to buy

March 2013
freehold property and receive Omani residency visas for themselves and their relatives.
Some of the major ITC projects are The Wave, The Muscat Hills and the Jebel Sifah
project.
The number of hotels and motels in the Sultanate of Oman during 2010 was 226, with a
total of 11,636 rooms. The number of tourist arrivals is steadily growing and over 1.5
million tourists visited the country in 2009.
Tender Board
Government contracts are awarded by tender. It is a pre-requisite that entities
(contractors, consulting firms, suppliers and training institutes) intending to bid for
Government contracts in excess of RO 250,000 are registered with the Tender Board. The
Tender Board classifies companies according to their issued capital and determines the
maximum and minimum size of contracts for which bids are submitted.
Employment
In general, labour market conditions in the Sultanate are conducive to the conduct of
business. The Governments labour market policies and programmes emphasize skill
training and occupation upgrading of Omanis, while regulating the employment of foreign
workers to prevent unfair competition with citizens.
The policy of the Sultanate of Oman towards the employment of foreign workers is
embodied in the Labour Law for the Private Sector. Expatriates may be employed provided
they do not unfairly compete with the available Omani workforce. In practice, this means
that the employer must request permission from the Ministry of Labour and Social Affairs
to employ expatriates and the request must specify the occupation of the expatriates.
Labour relations in Oman are extremely peaceful.
Working hours and weekends
The provisions relating to employment in the private sector are contained in the Oman
Labour Law, issued in accordance with Royal Decree No. 34/1973 and amended as per
Royal Decree No. 35/2003 and Royal Decree 113/2011. In particular, the law sets out
provisions relating to contracts of work, wages, leave, hours of work, labour disputes,
representative committees and punishment. The Law mandates that employees work not
more than 9 hours per day with at least a half an hour break for food and rest. The
maximum hours of work is set at 45 hours per week. During Ramadan, Muslim employees
must work for only six hours per day, or a maximum of 30 hours per week. Two days per
week off after 5 working days is mandatory, as per a recent amendment.
International time and business hours
Local time is four hours ahead of Greenwich Mean Time.
The working days for Government and most of the private sector are from Saturday to
Wednesday with Thursdays and Fridays being weekly holidays.
However, banks and financial institutions follow a Sunday to Thursday working day
pattern, with Friday and Saturday as weekly holidays. In general, the following hours are
followed:
Government 0730 to 1430 hrs
Banks 0800 to 1400 hrs
Industrial and Business Establishments 0800 to 1700 hrs
Retail Establishments 0900 to 1300 hrs and 1700 to 2200 hrs

March 2013
Salaries, wages and benefits
Some of the important provisions are as follows:
End-of-service benefits (referred to as gratuity)
A worker has the right to gratuity provided he is in continuous service for one year or
more. The amount of gratuity payable is based on the workers final basic salary and the
entitlement is: 15 days basic salary for the first three years of service and 30 days basic
salary for each subsequent year.
Leave
Annual leave: Worker has the right to 30 days paid leave based on gross salary for
every completed year of service.
Emergency leave: Workers have the right to paid emergency leave of 6 days per
year.
Sick leave: Workers are allowed sick leave of not more than 10 weeks in one year.
Special paid leave: Worker is entitled to a special paid leave in case of marriage (3
days), death of son, daughter, mother, father, wife, grandfather, grandmother,
brother or sister (3 days); death of uncle or aunt (2 days); Haj (15 days) and
examination (15 days).
Overtime
If a worker is asked to work more than the normal working hours, the employer should
provide overtime equal to the basic salary calculated according to overtime hours plus 25%
extra payment for day overtime work and 50% extra payment for night overtime work. If
work is performed during the weekly day off or on official holidays, the worker gets 100%
as an overtime payment, if not given another compensatory day off.
Labour market reform and Omanisation
The rapid economic development which started in the 1970s gave rise to a demand for
skilled, semi-skilled and manual labour. As the country did not have the desired categories
of people required, there was a massive import of expatriate labour. According to the
latest census, almost 29% of the population consists of expatriates.
The Government of Oman has been pursuing an active policy of Omanisation by assertive
action. It is now mandatory for certain sectors of the economy to achieve specified
Omanisation rates by set dates. Periodically, the Ministry of Manpower stipulates the
number of Omanis that are required to be employed by each type of industry as against
the employment of expatriates. Omanisation percentages are fixed for different sectors.
In addition, certain specific jobs are fully reserved for Omani nationals.
Omanisation of employment does not mean that the goal is to replace all foreign workers.
Rather, Omanisation aims to assure the full and effective utilization of the human
resources of the Sultanate. Expatriate labour is viewed as a complementary resource, not
as competition to the local labour force.
The employment of Non-Omani personnel is subject to obtaining a labour clearance from
the Ministry of Manpower and a resident visa from the Immigration Department. The
Omanisation percentage is calculated on the total number of staff and not as a percentage
of Omanis to non-Omani employees.
Investment in Oman
Attractions
Oman is among the few countries in the world that are considered ideal for long-term
investment. It possesses a modern infrastructure, a growing industrial base, a stable
Government, financial and monetary stability, a freely convertible currency and, most
notably, institutions that protect investors and ensure their access to the market.

March 2013
Poised at the entrance to the Gulf region, the source of two-thirds of the world's oil
exports, Oman is in the middle of the East-West trade routes, ensuring easy access to
markets in the Middle East, India, South-East Asia, Africa and Europe. Membership of
various regional associations has further opened up the trade routes. Omans membership
of the World Trade Organization ensures its adherence to international trade norms and
practices. Oman is also a member of the Indian Ocean Rim Association for Regional
Cooperation, which opens up a potential market of over 1.5 billion consumers. In addition,
membership of the Gulf Cooperation Council ensures duty-free export of products within
the member countries.
Oman is one of the most progressive countries in the Middle East. In this regard, it has
worked at creating the right climate for new investments by developing a free,
competitive economy with equal opportunities for all, and shaping laws and regulations
that encourage enterprise. Liberal investor-friendly policies have been implemented,
while procedures for clearances and approvals have been simplified. Education and
vocational training have been given priority to ensure that a professionally trained
workforce is being developed. The abundant local labour can be harnessed and trained to
specific requirements. In addition, investors have easy access to a skilled and disciplined
expatriate workforce.
Oman also has a culturally rich and religiously tolerant society. The country has all social
amenities and its traditional hospitality acts as an added incentive for foreign investors.
Public Authority for Investment Promotion and Export Development (PAIPED)
The Public Authority for Investment Promotion and Export Development (PAIPED) is a
Government organization instituted by Royal Decree in 1996. PAIPED aims at increasing
the contribution of the private sector to the investments required for the development of
industry and commerce in Oman and to promote the export of Omani products.
PAIPED has two directorates the Directorate General of Investment Promotion and the
Directorate General of Export Development.
PAIPED is aiming at raising the investment share of the private sector both national and
foreign in order to achieve more employment opportunities for Omanis and enhance the
value added to the economy from all sectors, with special emphasis on priority sectors
that exploit endogenous economic resources and utilise modern technology. Moreover,
PAIPED is also aiming at expanding the volume of Omani exports in international markets.
Brand Oman
The Government has recently established Brand Oman Management Unit to provide the
Government with timely and cogent strategic communications, media relations and
marketing support. The aim of Brand Oman is to establish and project a common and
consistent national image; ensure truthfulness and authenticity in its messaging; provide
creativity, direction, support and set excellence in standards for developing and delivering
Government information campaigns; and create positive recognition and awareness of
Oman's national identity.
Business incentives
Oman offers unmatched incentives to foreign investors which aim to guarantee the long-
term objectives that serve the interests of the investor as well as the country and its
people.
The Law for Organization and Encouragement of Industry provides a variety of incentives
for industrial projects. Some of the incentives provided by the Government to strengthen
the countrys industry are as follows:
Oman Development Bank soft loans with a subsidized interest rate;
Plant, machinery and spare parts imported for industrial production are exempted

March 2013
from Customs duties. Raw and semi-processed materials imported for
manufacturing and which are not available locally are exempted from Customs
duties;
Omans investment laws guarantee exemption from income tax for a 5 year period,
which may be renewed for another period of 5 years. Oman does not levy any
personal income tax; and
Planned and serviced plots are provided by the government to set up industrial
units. Ready-built factories of various sizes, which can be leased for a period of 25
years (renewable), are also available. Services provided at the industrial estates
include roads, water, gas, means of communications, liquid waste processing, solid
waste collection and disposal, etc. The government levies only a nominal rent on
the premises at the industrial estates as follows:
Annual rent for land plots: 250 baizas/sqm for the first 5 years and thereafter
500 baizas;
Annual rent for building: RO 2-4/sqm.

The Foreign Capital Investment Law has been liberalized, and foreign equity up to 70% is
permitted. Even 100% foreign equity could be permitted by the Government if a project is
considered vital for the development of the national economy.


March 2013
2. THE FINANCIAL SYSTEM
Business organizations and reporting requirements
The Sultanate of Omans Commercial Law is largely derived from the Napoleonic Code, as
in most other Middle Eastern countries. There are several types of business organization
which may be relatively new to those used to Anglo-Saxon legal systems.
Business structures: options available
The type of investment vehicle which is eventually chosen by foreign businesses will
depend on the industry or service they wish to offer, the geographical market, and
whether the import of goods or manufacturing is involved. Obtaining contracts from
Government and quasi-government organizations is usually on a tender system.
Business entities
Commercial entities must register with the Ministry of Commerce and Industry and the
Chamber of Commerce and License of Muscat Municipality or another regional
municipality, prior to commencing business in Oman. Other additional clearances may also
be required from relevant authorities, depending on the specific nature of the business.
The various ways in which a business can be organized in Oman are listed below:
Public Joint Stock Company
Closed Joint Stock Company
Limited Liability Company
Limited Partnership
General Partnership
Joint Venture
Holding Company
Sole Proprietorship
Branch of Foreign Company
Commercial Representative Office
Commercial Agent
Public Joint Stock Company (SAOG)
These are joint stock companies whose shares are listed on the Muscat Securities Market.
The minimum capital requirement for setting up an SAOG is RO 2 million. The maximum
shareholding of the promoters is 60% and the 40% balance of the shares must be offered to
the public. All SAOG companies must be listed on the Muscat Security Market.
The total shares owned by the promoters should not be less than 30% of the share capital.
It should be noted that if an SAOC is first formed and then subsequently floated as a
SAOG, there is a requirement for three years audited balance sheets to be produced by
the company prior to the conversion/promotion.
There is a restriction on promoters disposing of their shares in a SAOG prior to the
publication of two audited balance sheets of the company. SAOG companies are managed
by a Board of Directors which is elected by the shareholders.
Closed Joint Stock Company (SAOC)
These are joint stock companies that are closely held. The minimum capital requirement
of a SAOC is RO 0.5 million, and the minimum number of shareholders is three. Unlike a
SAOG, promoters in a SAOC are not restricted from disposing of their shares prior to the
publication of two audited balance sheets of the company.
While it is unlisted in the sense that its shares are not quoted, transfers of shares are
conducted on the Muscat Securities Market, and shareholders registers are maintained by

March 2013
the Muscat Clearing and Depositary Company SAOC in the same way as for public listed
companies. Shares are represented by numbered transferable certificates.
Limited Liability Company (LLC)
A Limited Liability Company (LLC) is a commercial company with a fixed capital divided
into equal shares. The minimum capital required is RO 20,000 where no foreign
participation is involved. The capital requirement is RO 150,000 if any shareholder is a
non-GCC shareholder.
A LLC can be formed with two or more natural or legal persons, whose liability is limited
to the nominal value of their shares in the capital of the company. The number of partners
of the LLC must not exceed 40.
The LLC can be formed by submitting a constitutive contract containing the name of the
company, the object clause, names and particulars of the members, allocation of shares
and authorized signatories. A bank certificate is required if the capital is contributed in
cash. If the contribution is in kind, a certificate from an expert valuer must be attached.
General Partnership
A General Partnership is a commercial partnership formed by two or more natural or legal
persons and which aims to carry on a business under a certain trade name.
The partners of a General Partnership are jointly and severally liable for the General
Partnerships debts to the full extent of their property.
The name of the General Partnership may include the name of one or more of the partners
and it must be followed by the phrase General Partnership.
A partnership agreement must be registered with the Ministry of Commerce & Industry
together with the authorized signatory form, after which a commercial registration is
issued by
Limited Partnership
A Limited Partnership is a commercial partnership which comprises two categories of
partners: One or more general partners - who are jointly and severally liable for the
Limited Partnerships debts to the full extent of their property - and one or more limited
partners, whose liability for the partnerships debts is limited to the amount of their
contribution to the partnership capital, provided such amount has been stated in the
Limited Partnerships Memorandum of Association.
The limited partners do not participate in the management, and their name is not used as
part of the partnerships name. The procedure for the formation of a Limited Partnership
is similar to the formation of a General Partnership.
Joint venture
A joint venture is formed by two or more legal or natural persons establishing a legal
relationship between themselves without affecting third parties. The joint venture must
not have a name of its own and its existence must not be raised as a defence against
claims made by third parties. It is not registered in the Commercial Register. However, it
is considered as a separate entity for tax purposes.
Holding company
A holding company is a Joint Stock Company or a Limited Liability Company which
financially and administratively controls one or more other companies which become a
subsidiary to that company by means of it holding at least 51% of such company or
companies, whether they are Joint Stock or Limited Liability Companies.

March 2013
The capital of a holding company must not be less than RO 2 million, and a holding
company can neither hold shares of General or Limited Partnership companies nor shares
in other holding companies.
Sole proprietorship
A sole proprietorship is a form of business which can be carried out by Omani Nationals or
by GCC Nationals pursuing certain economic activities. The proprietor is personally liable
for debts to the full extent of his assets. The minimum capital requirement to form a sole
proprietorship is RO 3,000.
Some of the services reserved for Omani Nationals are manpower recruitment and supply,
follow-up services at Government departments, custom clearances, etc.
Branch of foreign company
A foreign company can set up a branch office in Oman if it has a contract with the
Government or Government bodies. Banking institutions and insurance companies are
licensed to operate as a branch.
Branches are permitted only when their head office has been in operation for a period of
10 years. The Head Office must provide a guarantee for the operations of the branch.
Commercial representative office
Foreign companies are permitted to have a legal presence in Oman for the purposes of
conducting market research, general advertising, marketing and promotional activities and
liaison with commercial entities in Oman. The Representative Office cannot undertake any
commercial activities except importing samples for promotional purposes, and can only be
established by companies that have a head office and at least three branches in other
countries.
Commercial agent
A Commercial Agent is appointed by foreign businesses to export goods and services to
Oman. All agencies must be registered with the Ministry of Commerce & Industry. Non-
exclusive agencies are allowed even though there is no bar for imports through suppliers
other than the official agents.
Governing laws
Business and investment in Oman is governed by the following laws:
Commercial Companies Law, 1974
The Oman Commercial Law, 1990
Commercial Registration Law, 1974
Foreign Capital Investment Law, 1994
Capital Market Authority Law, 1998
Commercial Agencies Law, 1977
Law for Organization and Encouragement of Industry, 1978
In addition to the above laws, specific industry laws like the Banking Law, Insurance Law,
etc. are also applicable. The registration for all legal entities has to be done at the
Ministry of Commerce & Industry. Approvals from relevant ministries are required for
specific businesses. For example, approval from the Ministry of Agriculture and Fisheries is
required for agricultural activities. Registration with the Tender Board is required for
bidding for large Government tenders.
Accounting and auditing requirements
Accounting requirements: as per the Oman Commercial Law, all commercial entities must
maintain proper books of account. These include a sales book, a ledger, a record of
personal withdrawals and a stock register. The books of account have to be retained for 10

March 2013
years; accounts have to be prepared in accordance with International Financial Reporting
Standards.
Audit requirements: under the Commercial Companies Law, all Joint Stock Companies and
Limited Liability Companies must have their financial statements audited once a year.
Brokerage companies licensed by the Capital Market Authority (CMA) must submit half-
yearly audited accounts to the CMA. Joint Stock Companies must publish their financial
statements in the daily newspapers.
The tax legislation requires that taxable entities with a capital of more than RO 20,000
must attach their audited financial statements to their tax returns. The banks have
recently made it compulsory for most entities to submit their audited accounts within four
months of the entities year end. Joint stock companies have to get their accounts
approved in their Annual General Meetings, which must be held within 3 months of the
year end.
Trademarks and intellectual property
Oman is a member of the World Intellectual Property Organization and has taken measures
to promulgate legal provisions to protect intellectual property rights. Royal Decree No.
38/2000 promulgates the law that protects trademarks, trade information, trade secrets
and trade against illegal competition and infringement. Trademarks include words,
letters, signatures, drawings and similar symbols used to distinguish commodities,
products and services. Both local and foreign companies with no physical presence in
Oman may apply to the Department of Trademarks for trademark protection. Trademarks
are protected for a renewable 10-year period from the date of their registration with the
Ministry of Commerce and Industry. Penalties for trademark violation range from the
seizure or destruction of trademarks and anything associated with their production to fines
and imprisonment.
Copyrights
Copyrights are governed by Legislative Decree No. 10 of 1993. The law protects authors of
creative works which are of a literary, scientific, artistic or cultural nature. The Ministry
of Information is empowered to monitor the implementation of this law.
Stock exchange
The Muscat Securities Market (MSM) is the Stock Exchange of the Sultanate of Oman. The
MSM has been established as a public organization with independent legal status. It aims
to encourage savings and improve investment awareness as well as to protect investors.
The MSM takes on important self-regulatory functions over brokers and listed companies,
in addition to serving as an exchange house. All Omani Joint Stock Companies must be
members of the MSM and the shares and bonds of Public Joint Stock Companies have to be
listed there. The MSM aims to provide a better environment for investing in securities and
consequently to realize a mutual benefit for the national economy and investors. It also
facilitates the trading of securities issued by Joint Stock Companies as well as bonds issued
by the Government, commercial companies, investment funds units and any other
domestic or foreign securities agreed by the Market.
The MSM has three markets in operation - the Regular Market, the Parallel Market and the
Third Market. The Regular Market is for securities of public companies that meet specific
profitability, capital and shareholding criteria. The Parallel Market is for securities of new
public companies and those companies that fail to meet one or more of the specified
requirements for the Regular Market, and the Third Market is for share dealings in closed
companies and special transactions. The principal index is the MSM 30, which comprises
10 companies each from the banking and investment, industry and services, and insurance
sectors.

March 2013
Capital Market Authority: In 1998, a new Capital Market Law established the Capital
Market Authority (CMA), a Government authority which regulates the issuing of shares and
trading of securities, and supervises the operations of the MSM and all publicly listed
companies. The CMA has developed a Corporate Governance Code and it has also started
monitoring the implementation of the Code. It is now mandatory for public companies to
describe the various measures of Corporate Governance in their Annual Report. The
auditors have to comment on the Corporate Governance of the Companies.
Muscat Clearing and Depository Company SAOC: This is a Closed Joint Stock Company
(SAOC) established in 1999 and is jointly owned by the private sector and the MSM. It acts
as the sole provider of registration services, transfer of ownership of securities and safe
keeping of ownership documents.


March 2013
3. THE TAX SYSTEM
Income tax
Introduction
Income tax in the Sultanate of Oman has been in force since 1971 by the Income Tax
Decree of 1971, and is governed by the Law of Income Tax on Companies of 1981 (Old
Law). In June, 2009, a new tax law was promulgated by Royal Decree 28/2009 which is
effective from 1 January, 2010. The new tax law provided clarity on several provisions
included in old tax law and eliminated disparity in the tax rates charged to local and non-
GCC foreign companies. The Executive Regulations to the New Tax Law were issued on 28
January, 2012. Income tax in Oman is administered by the Secretariat General of Taxation
under the Ministry of Finance.
Taxable entities
The entities that are subject to tax are: Omani proprietorships, Omani partnerships,
Omani companies and permanent establishments (PE). The term PE refers to foreign
entities (including persons) carrying out activities in Oman, either directly or through a
dependent agent. Under the new tax law, if a foreign person carries on an activity of
providing services and stays in Oman for at least 90 days in a twelve month period, this
will create a PE. The activities of a dependent agent could create a PE for the foreign
principal in certain cases. The Executive Regulations provide that an agent shall be
deemed to be PE of the foreign principal, if such agent is economically and legally
dependent on the foreign principal, within the ambit of the business.
General principles governing a foreign companys taxability in Oman
While all locally registered entities are subject to income tax in Oman, a foreign company
is also taxed in Oman under the Omani Tax Law in the following circumstances:
Tax on Permanent Establishment
The term permanent establishment (PE) is defined as a fixed place of business through
which a business is wholly or partly carried on in Oman by a foreign person either directly
or through a dependent agent. It specifically includes a place of sale, place of
management, branch, office, factory, workshop, mine, quarry, or other place of
extraction of natural resources, building site, a place of construction, or an assembly
plant.
Once a PE is deemed, all income arising under the contract, including income attributable
to activities carried on outside Oman, is assessable to tax in Oman. In particular, this
applies if all the services under an agreement are of a composite and inter-dependent
nature.
Withholding tax
Withholding tax is a tax charged on certain specified payments which accrue or arise in
Oman to foreign companies which do not have a PE, or which do not constitute a part of
the gross income of a PE. The specified payments are:
a) Royalties;
b) Payments for research and development;
c) Payments for the use of or right to use computer software; and
d) Management fees.
A taxpayer who has paid or credited any of the specified payments is responsible for
deducting 10% tax from the gross amount paid or credited, and this should be remitted to
the Secretariat General not later than 14 days from the end of the month in which the
amount is paid or credited, whichever is earlier. A delay in remitting the withholding tax

March 2013
to the tax department will attract additional tax of 1% of the tax due, per month.
Computation of taxable income
Method of accounting
Accounts are required to be prepared in accordance with International Accounting
Standards.
Every company should preserve all registers and documents for at least ten years following
the accounting period.
Accounts should be maintained in Omani Rials. Permission should be obtained in advance
from the tax department if the accounts are maintained in any other currency.
Tax rates
The new tax law provides for a uniform tax rate of 12% for all taxable entities with an
initial tax-free exemption of RO 30,000. This removes the previous disparity in tax rates
between foreign and local taxable entities. Under the old tax law, Omani and GCC
registered proprietorships/companies were taxed at 12% on taxable income of over RO
30,000 and non-GCC foreign companies were taxed at progressive income tax rates of up
to 30%.
Taxable income
The new tax law has eliminated the territorial concept of taxable income under the old
tax law, and confirms the global system of tax. Under the new tax law, Omani
proprietorships and companies are liable to tax on all their income, wherever earned.
The term taxable income specifically includes income earned before incorporation or the
commencement of business, which is deemed to accrue on the date of commencement of
the business.
Income means income of any kind, whether received in cash or in kind, and includes in
particular;
Profit from any business.
Consideration for carrying on research and development.
Consideration for lease or usufruct of real estate, machinery or other moveable or
immovable property.
Profits resulting from granting any person a usufruct of or the right to use real
estate, machinery or any other moveable or immovable property.
Profit resulting from granting any person a usufruct of or the right to use real
estate, machinery or any other moveable or immovable property.
Dividends, interests, or discount received.
Royalties or management fees.
Royalties referred to above are defined as:
(1) Consideration for the use or right to use
a) intellectual or proprietary rights either for artistic, literary or scientific works,
including computer software, cinematograph films, or films or tapes or discs or any
other media used for radio or television broadcasting;
b) patents, trademarks, drawings, models and secret processes or formulas;
c) industrial, commercial or scientific equipment,
(2) Consideration for information concerning industrial, commercial or scientific
experience; and
(3) Consideration for granting rights to work mineral or other sources of natural wealth.

March 2013

Exemptions
Companies and establishments constituted and licensed in accordance with the
Omani laws and registered with the Ministry of Commerce and Industry and
established with the fundamental purpose of industry, mining, agriculture, fishing,
farming or agriculture, higher education institutions, schools and colleges and
hospitals are exempt from income tax for a period of five years from the date of
commencing to operate. The period of exemption may be extended for up to a
further five years subject to meeting specific conditions relating to investments in
assets, Omanisation and average profit during exemption period.
Shipping companies registered in Oman are exempt from tax, and foreign shipping
companies carrying on business in Oman through an authorized agent are tax
exempted from the date of commencement of business, on condition that
reciprocal treatment is granted.
Income generated by foreign airline companies carrying out their activities in Oman
through an established firm is exempt from tax.
Dividends received in respect of an investment in equity, shares, portions or stocks
in the capital of any other company established in the Sultanate of Oman are
exempt from tax.
Profits on the sale of securities listed on Muscat Stock Exchange are fully exempt
from tax.
Income earned by joint investment accounts/mutual funds registered in Oman
under the Capital Market Laws, or established overseas for dealing in shares and
securities listed on Muscat Securities Market, is exempt from tax.
Deductible expenses
The law permits the deduction of all actual expenses incurred during the tax year to the
extent that such expenses are fully incurred. Deductions are limited to those necessary to
generate the gross income of the business entity. Any expenses which the tax department
determines as excessive to the related income will be disallowed to the extent of the
amount deemed to be excessive.
Depreciation and disposal of capital assets
The straight-line basis of depreciation under the old tax law has been modified to simplify
the calculation of depreciation on capital assets deductible for tax. Capital assets for the
purposes of depreciation means: buildings, ships, aircraft, intangible assets and machinery
and equipment in respect of which depreciation is allowed. Machinery and equipment
includes computer software, installations, furniture, fixtures and fittings, and vehicles,
and excludes ships and aircraft. Calculation of depreciation on a straight line basis
continues to apply for buildings, ships, aircraft and intangible assets. Depreciation is only
allowed on the above assets if they continue to be in use for the business at the end of
that accounting period.
The new tax law includes the pooling of assets concept for depreciation on machinery and
equipment. There are three pools, and each asset classed as machinery and equipment has
to be allocated to a respective pool. The depreciation for each pool is calculated on the
reducing balance basis. To calculate depreciation for the year, an opening written down
value, plus additions of assets minus sale proceeds of disposals of assets, is taken as the
asset base of that pool, and the depreciation rate is applied to it. For machinery and
equipment, there is no need to compute a taxable gain or loss on disposal separately, as
sale proceeds are taken into account in calculating depreciation.

March 2013
Tax depreciation is deductible at rates prescribed below:
Assets Depreciation Method Rate
Permanent buildings Straight line 4% *
Hospital and educational buildings Straight line 100%
Prefabricated buildings Straight line 15%
Bridges, platforms, pipelines, permanent
ways and railway lines
Straight line 10%
Aircraft and ships Straight line 15%
Heavy equipment Reducing balance 33%
Vehicles Reducing balance 33%
Furnishings Reducing balance 33%
Computer and software Reducing balance 33%
Scientific research implements Reducing balance 100%
Drilling rigs Reducing balance 10%
Other equipment and tools Reducing balance 15%
* In case of buildings used for industrial purposes (excluding buildings for housing of
employees, office and storage), the stated rates of depreciation shall be doubled i.e. 8%.
If the business ceases, or no assets remain in the pool, and the asset base as described
above is more than the disposal value, the excess amount is treated as a balancing
allowance; if the disposal value is more than the asset base, the excess is treated as a
balancing charge, and the remaining depreciation base for that asset pool is treated as
zero.
Gains or losses on the disposal of capital assets other than pool assets (machinery and
equipment) are subject to tax as a balancing charge (gain) or balancing allowance (loss).
When a disposal value relates to all assets, the Secretariat General can apportion the
disposal value between the various assets in order to compute a balancing
charge/allowance. The date of sale of a capital asset is the date on which the procedure
for the transfer of ownership is completed or the date of delivery of the asset sold,
whichever is earlier.
Head office charges
Foreign companies operating in Oman through branches or having deemed permanent
establishment status are entitled to a deduction for head office expenses which is
restricted to the lower of the following:
The expenses allocated to the branch or Oman operations; or
3% of the total income of the branch or from Oman operations.

For branches of foreign banks and insurance companies, the allowance may be increased
to up to 5% of the revenue (the total income of insurance companies for this purpose is
total premium net of reinsurance). Branches of industrial companies using high technology
(which needs to be demonstrated) may be allowed up to 10% of the total income.

In view of the restriction of head office overheads, foreign companies should keep
separate records for expenses incurred for the Oman branch/operations. For example,
time spent by the personnel at the head office could be charged directly to the branch
(instead of being treated as overheads) by maintaining time sheets which would identify
the actual time spent for the branch.
Interest costs
Interest expense must be real, incurred and relate to earning gross income and not for
capitalisation of the business. Omani establishments and companies claiming deduction of
interest costs on loan from related parties will now be required to comply with minimum
capital requirements referred to as thin capitalisation rules. Omani establishments and

March 2013
companies which exceed debt to equity ratio of 2 to 1 will be subject to proportionate
disallowance of deduction for interest expenses on loans taken from related parties.
Interest costs incurred by branch companies are deductible only if the interest bearing
loan is actually borrowed by the head office from a third party lender or bank for the
specific benefit of the Oman branch and the loan is used by the branch for financing its
working capital.
Sponsors fees
A sponsor means a person with whom a foreign company enters into a contract to carry on
its business in Oman. Sponsors fees are restricted to 5% of the net taxable income before
charging such fees and after set off of tax losses from earlier years. No deduction is
allowed if there is a loss. Further, the fees must have been incurred for services received
and not relate to commission or consideration for other service arrangements. The
Executive Regulations require companies to enter into a contractual agreement to
document the mutual rights and liabilities.

Agents fees
An agent means any person who regularly and independently carries on agency business in
the management of insurance operations on behalf of a foreign insurance company.
Agents fees are restricted to a maximum of 25% of the net premiums.

Related party transactions
The normal practice is that transactions entered into directly or indirectly with related
parties are closely scrutinized by the Secretariat General, and adjustments are made in
the computation of taxable income. The new tax law defines the term related parties
and specifies the rule and procedures for making adjustments in the computation of
taxable income from related party transactions.
A related party relationship exists between two parties if both persons are associated with
each other, or if one controls the other or both are controlled by a third person, or one is
a relative of the other up to the third degree, whether it is direct, indirect or a relation by
marriage. A person is considered to have control over the other if he is entitled directly or
indirectly to control the other persons business and commercial matters.
If the related party transactions result in lower taxable income or higher losses, the actual
terms of the transactions are ignored and the taxable income is computed by assuming the
terms on which the transaction would have been entered into by independent persons.
When adjustments are made due to related party transactions, the Secretariat General
can compute the taxable income of the other related party to that transaction, on the
same basis adopted in respect of that transaction, provided that a written request is
submitted to the Secretariat General by the other related party within a period of not
more than 12 months from the date of the assessment.
Managerial/partners remuneration
The deduction for remuneration of partners of general partnerships, limited partnerships
and limited liability companies is limited to RO 1,000 per partner per month or the actual
amount, whichever is less, provided the following conditions are met:
The partner should be dedicated full time to management, and should be present
regularly throughout the financial year, or the accounting period, as the case may
be, for managing the company, or directing or monitoring its activities, provided
that the partner is not employed elsewhere.
In determining the actual remuneration, all salaries, wages, bonus, rewards,

March 2013
allowances, commission, additional benefits and any other payments which are
accrued or paid to the partners in return for management are taken into account,
including the value of any benefits in kind such as company residence, means of
transportation etc. whether paid directly to him or to his family. Family means a
spouse and children under 18 years of age.
Where the partner is engaged in the management of more than one company on a
full time basis, remuneration is deducted, as per the provisions, only from the
taxable income of the company chosen by the partner.
Deductions are restricted to 10% of the taxable income before deducting the
salaries and any losses brought forward from preceding years. No remuneration can
be deducted if the computation of the companys taxable income for the relevant
year results in a loss.
The allowable deductions for specialized directors or partners in professional companies
who acquire high technical skills and management efficiency will be the salaries specified
in the contract or RO 3,000 per month, whichever is lower.

Directors remuneration, including sitting fees paid to the Directors of public joint stock
companies, is tax deductible if such remuneration and sitting fees paid to the Board of
Directors and subcommittees is determined as per the limits prescribed by Article 101 of
the Commercial Companies Law, 1974 as amended. The limit prescribed under the above
referred article is that the annual remuneration and sitting fees must not be more than 5%
of the net profits of the year after deducting the transfer to legal reserve and optional
reserves and notionally calculating or distributing the dividends to the shareholders at not
less than 5% of the capital (unless the Articles of Association of the company provide a
higher rate). The maximum total of over-all limits of entire remuneration and sitting fees
paid by the company must not be more than RO 200,000, with a sub-ceiling of RO 10,000
as sitting fees for each director per annum.

In all cases, the deduction for remuneration must not exceed 30% of the taxable income of
such taxable year before deducting such remuneration and after adjusting brought forward
losses from previous tax years. When the proprietor or partners operate/manage more
than one establishment or company, deduction of salaries shall be allowed in an
establishment/company selected by the proprietor/partner provided that a declaration is
submitted along with the final tax return in this respect. In case of failure to submit such
tax return, the Secretariat General may chose the establishment or company for which the
deduction will be allowed.

Bad debts
Bad debts are allowed as a deduction if the Tax Department considers that the debt has
become bad during the tax year. Deductions for bad debts in excess of RO 1,500 will only
be allowed if taxpayers provide documentary proof that the taxpayer has taken specified
legal processes to recover the debt before taking a decision to write off. The legal process
required to prove bad debts includes a judgement by a court of law, debts redemption
order or liquidation or bankruptcy proceedings. Deductibility of debts below RO 1,500 is
subject to recovery procedure and rules to be determined by the Secretariat General of
Taxation.
Non-deductible expenses
The following deductions are not allowed in arriving at taxable income:
Income tax;
Provisions for bad or doubtful debts (although a deduction may be claimed for

March 2013
debts written off);
Stock provisions (although a deduction may be claimed when stock is disposed of
below cost);
Capital expenditure;
Sums connected with any expenditure or loss that may be recoverable through an
insurance or compensation claim;
Donations other than those paid to specified institutions approved by the Financial
Affairs Council. Such donations shall be restricted to 5% of turnover;
Tax consultation fees;
Any expense or cost incurred to generate income which is exempt from income tax;
and
Any loss incurred on the sale of securities listed on the Muscat Securities Market.
Carry forward and set off of losses
Losses can be carried forward for up to five years, and are offset against future profits,
but losses relating to the first 5 years of an exemption period can be carried forward
indefinitely until fully utilized. The new tax law requires that when a foreign entity
carries on business through more than one PE, the loss of any of those PEs for any tax year
can be carried forward only after being reduced by the taxable income for that tax year of
other PEs owned by that foreign entity.
Procedures
Accounting period
The tax year ends on 31 December. However, business entities may apply to use any other
date for their tax year end, provided this date is used consistently. The first period may
be less than a period of 12 months or may be extended to a maximum period of 18
months. Subsequent accounting periods generally end after 12 months, unless before the
expiry of this period, the business of the Omani proprietorship or a PE ceases or, in the
case of an Omani company, it is liquidated.
Financial statements
The financial statements must be prepared in accordance with International Accounting
Standards. Accrual accounting is the acceptable method. Any other method will require
prior approval. Financial Statements must be audited by an auditor based and licensed to
practice in Oman.
Tax registration and notification
All taxpayers must now register with the tax department within three months of the date
of incorporation or the creation of PE status (in the case of foreign entities) and notify any
changes in address, name and legal status within one month. Exempted from the above
requirement are small establishments and Omani companies if their total income does not
exceed RO 100,000 and they do not employ on average more than eight employees
(including temporary and incidental employees) and their registered capital does not
exceed RO 20,000. Any person who arranges the sale of a taxpayers movable properties or
real estate by public auction is required to notify the Secretariat General of the date fixed
for such auction at least 10 days before the auction date.
Principal officer
The principal officer is responsible for discharging the obligations imposed on a taxable
entity. In the case of an Omani proprietorship or company, the principal officer is the
owner, partner, chairman, manager, liquidator or bankruptcy manager. In relation to a PE,
the principal officer is the owner, manager or agent of the owner of that PE. The provision
that an agent can be the principal officer might involve certain implications and

March 2013
responsibilities for the agent. The new tax law specifies that the principal officer may not
be absent for more than 90 days during any tax year.
Tax returns
All taxpayers are required to file provisional and final tax returns for every taxable year.
Exempted from the above are establishments and Omani companies if their total income
does not exceed RO 100,000 and they do not employ on average more than eight
employees (including temporary and incidental employees) and their registered capital
does not exceed RO 20,000. These conditions should be satisfied for the particular tax
year and two immediate prior tax years to benefit from exemption, along with an approval
from the Secretariat General of Taxation.
Provisional tax returns must be filed within three months of the end of each accounting
period. The tax payable for the period is due when the provisional return is filed. Failure
to pay tax may lead to additional tax at 1% per month on the amount of tax due.
The Final Tax return must be filed within six months of the end of the accounting period.
An extension may be granted by the Secretary General of Taxation. The Final Tax Return
should be accompanied by audited financial statements if the registered capital of the
taxable entity exceeds RO 50,000 or employs on average more than ten employees, or
their total income in the taxable year exceed RO 300,000 and requires approval from the
Secretariat General of Taxation.
If a foreign person carries on business in Oman through more than one PE, a consolidated
return must be submitted, which must include the taxable income of all the PEs.
Where a business establishment or PE ceases to carry on business, it must notify the
Secretariat General not later than seven days from the date of cessation. The return for
that year must be filed by the date specified by the Secretariat General, and the tax due
on the basis of the return is payable on the date specified by the Secretariat General.
Tax administration
The Secretariat General has the right to request from any person to whom income has
accrued or arisen, or any other taxpayer, their name, address and other information
relating to such income. The requested information needs to be submitted within the time
specified in the request letter. Designated employees of the Secretariat General will have
the judicial enforcement powers. The Executive Regulations have introduced provisions
that authorise the tax authorities to carry out an examination of taxpayers records at the
taxpayers premises. Such examination shall be carried out by giving advance notice to the
taxpayer.

Communication and due dates
Unless proven otherwise, a notice served through the post by the Secretariat General will
be deemed to have been received at the specified address on the next day following the
end of a period of fifteen days from the date of sending it by post. If the due date for
compliance or payment falls on a public holiday, the deadline for submission/payment is
postponed to the next official working day. The new tax law provides for delivery of
notices, returns and accounts and other documents by electronic means, as per the
procedure to be determined by an Executive Regulation.
Assessment
All tax returns submitted are subject to assessment within 5 years from the end of the tax
year during which the final return is submitted. If withholding tax which is due has not
been paid by the due date, the Secretariat General can issue an assessment in the name of
the taxpayer responsible for deduction and remittance.


March 2013
The new tax law authorizes the Secretariat General to revise and reissue an assessment
within 5 years from the date of the first assessment, if the assessment includes an obvious
error or omission, or if it is insufficient.
The new tax law limits the period for completing an assessment for taxable entities who
fail to file tax returns to 10 years from the end of the tax year.
Objections and appeals
Taxpayers can make an objection to an assessment to the Secretary General of Taxation.
The time limit to file an objection under the old tax law was 45 days from the notification
(date of receipt) of assessment. Under the new tax law, the objection must be filed within
45 days from the date of serving (posting) the assessment order. The time limit for
considering an objection has been increased from the previous 3 months (extendable for a
further 3 months) to 5 months (extendable to a further 5 months).
Taxpayers can also appeal to the Tax Committee against a decision of the Secretary
General of Taxation Affairs within 45 days of notification of the decision issued.
Taxpayers can also appeal to any court against a decision issued by the Tax Committee.
Payment of tax
The liability for the payment of tax falls on the owner of the Omani proprietorship, PE or
Omani company. Partners of joint ventures are jointly liable for payment. The Secretary
General has the authority to extend the time specified for payment of the tax due and
payable, or allow payment in instalments as per the procedures and conditions which will
be determined in an Executive Regulation.
Any tax not paid by the due date will attract an additional 1% per month, but the
Secretary General can grant relief from the whole or part of the additional tax in
accordance with Executive Regulation. Any request for a tax refund must be submitted by
the taxpayer to the Secretariat General within 5 years from the date of the assessment
that becomes final.
The old tax law provided for the deferment of payment of the entire tax relating to a tax
year for which an objection had been submitted. Under the new tax law, deferment of
payment is allowed only to the extent of the tax related to the disputed taxable income or
tax amount, provided that an application is submitted in writing within 30 days of
submission of the objection, and the undisputed tax amount has been paid.
Double tax avoidance treaties and credit for foreign tax paid
Foreign taxes paid in respect of overseas income are not tax deductible. However, foreign
taxes paid by Omani proprietorships and Omani companies are eligible for a tax credit up
to a maximum of the Oman tax that would otherwise be payable on such income. In order
to take a tax credit, the taxpayer is required to submit an application to the Secretariat
General when the tax is due in Oman on such income, but not later than two years from
the end of the tax year during which the foreign tax is paid.
Tax treaties
Oman has signed treaties for the avoidance of double taxation with the following
countries.
Algeria, Bangladesh, Belarus, Belgium, Brunei Darussalam, Canada, China, Croatia, Egypt,
France, Germany, India, Iran, Italy, Kazakhstan, Lebanon, Malta, Mauritius, Moldova,
Morocco, Netherlands, Pakistan, Russia, Seychelles, Singapore, South Africa, South Korea,
Sudan, Syria, Thailand, Tunisia, Turkey, United Kingdom, Uzbekistan, Vietnam, Yemen.
Note: Some of the above treaties have not been ratified or are not yet in force.
Oman has also entered into treaties with several countries with respect to the avoidance
of double taxation on income generated from international air transport.

March 2013
Penalties
The Secretary General of Taxation can impose penalties for the following:
Delays in submitting Returns of Income (50% of the tax due or RO 25, whichever is
higher);
Omissions of Income (25% of the tax due);
Failures to present financial statements and any other information requested by
the tax department; and
In the event of fraud and negligence, a penalty not exceeding RO 5,000, or a period
of imprisonment not exceeding three years, or both.
Other taxes and duties
Other taxes
Municipal tax is levied at 5% on hotel income, 3% on property rents, 10% on leisure and
cinema income and 2% on electricity bills exceeding RO 50 per month. A tourism levy of 4%
and service charge of 8% are charged on hotel income. A sewerage tax of 10% on water
consumption is levied on houses using the drainage system.
Customs duty
Registration requirements
Companies that import goods or carry on business as commercial agencies must fulfill the
following principal conditions:
They must be registered in the Commercial Register and with the Oman Chamber of
Commerce and Industry; and
The company objectives should include import trade and commercial agency
business.
Licensing requirements:
Goods imported into Oman must be accompanied by a certificate of origin and licensed by
the Ministry of Commerce and Industry. Certain classes of goods require a special license,
e.g. alcohol, firearms, pharmaceuticals and explosives. Pharmaceutical products have to
be registered with the Ministry of Health before they can be imported.
Rate of duty
Customs duty at a flat rate of 5% is levied on the CIF value of virtually all imported goods,
except for essential consumer goods, which are exempt. As an incentive to the
establishment of industrial installations, higher tariffs, generally varying between 15% and
25%, are imposed on the import of goods that compete with goods produced in Oman, such
as pipes, cement, polyurethane products, paints, glass fiber, reinforced plastic, PVC,
vitrified clay and cast iron. Agricultural products (subject to periodical decisions) attract
50% duty. Customs duty is levied at a rate of 100% on alcoholic beverages and at a rate of
50% on tobacco and related products.
The classification of items for the purpose of determining the rate of duty is amended
from time to time by Ministerial Decisions.
The Directorate General of Customs at the Royal Oman Police is responsible for customs
and security supervision of imports and exports. They are also the collecting authority for
customs duty, and also for combating smuggling and preventing the entry of banned
goods.


March 2013

BDO WORLDWIDE
BDO Member Firms are present in the following countries and territories:

Albania Guatemala Paraguay
Algeria Guernsey Peru
Angola Hong Kong Philippines
Argentina Hungary Poland
Armenia Iceland Portugal
Aruba India Qatar
Australia Indonesia Reunion
Austria Ireland Romania
Azerbaijan Isle of Man Russia
Bahamas Israel San Marino
Bahrain Italy St Lucia
Belarus Jamaica St Maarten
Belgium Japan St Vincent & The Grenadines
Bolivia Jersey Saudi Arabia
Botswana Jordan Senegal
Brazil Kazakhstan Serbia
British Virgin Islands Kenya Seychelles
Bulgaria Korea Singapore
Cambodia Kosovo Slovakia
Canada Kuwait Slovenia
Cape Verde Kyrgyzstan South Africa
Cayman Islands Latvia Spain
Chile Lebanon Sri Lanka
China (PRC) Liechtenstein Suriname
Colombia Lithuania Sweden
Comoros Luxembourg Switzerland
Costa Rica Macao Taiwan
Croatia Macedonia Tajikistan
Curacao Madagascar Tanzania
Cyprus Malaysia Thailand
Czech Republic Malta Trinidad & Tobago
Denmark & Faroe Islands Mauritius Tunisia
Dominican Republic Mexico Turkey
Ecuador Moldova Turkmenistan
Egypt Morocco Uganda
El Salvador Mozambique Ukraine
Estonia Namibia United Arab Emirates
Finland Netherlands United Kingdom
France New Zealand United States
Georgia Nigeria Uruguay
Germany Norway Venezuela
Gibraltar Oman Vietnam
Greece Pakistan Zambia
Greenland Panama Zimbabwe

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