The Oman Tax Authority has announced a five-year suspension of withholding tax on service contracts for vessels registered under the Omani flag, in a move aimed at strengthening the nation’s maritime and shipping sector.
Effective from September 1, 2025 through August 31, 2030, the suspension represents a targeted policy initiative designed to enhance Oman’s competitiveness in the global maritime industry and encourage investment in the sector.
Hossam bin Hamad Al Maamari, Director of the Tax Policy Department, said the measure forms part of the Authority’s broader strategy to improve the investment climate and support key economic sectors.
Oman tax boost
Al Maamari said: “This initiative directly addresses the needs of the maritime transport industry while encouraging vessel registration under the Omani flag and attracting specialised investments to Oman’s shipping sector”.
The tax suspension applies specifically to service contracts performed aboard vessels that have obtained Omani nationality and are officially registered with the competent authorities.
According to the Tax Authority, the relief is expected to reduce operational burdens for maritime companies, increase competitiveness, and support the sector’s expanded contribution to the national economy.
The Authority encouraged all maritime enterprises to take advantage of the initiative, noting that it will help lower costs, stimulate business expansion, and reinforce the country’s efforts to become a leading regional maritime hub.
