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Oman: Collection of Withholding Tax Suspended till 2025
Muscat July 14, 2022:
As part of the Sultanate of Oman’s Vision 2040 plan with a vision of achieving high economic growth, His Majesty Sultan Haitham bin Tarik floated Oman’s Economic Stimulus Plan on 3 March 2021. According to the plan, a circular was issued by Capital Market Authority (CMA) announcing the suspension of the collection of withholding tax at 10% on dividends of shares, returns on Sukuk and interests on bonds till May 6, 2022.
The circular was addressed to the general public of investors, public joint stock companies, Muscat Stock Exchange, Muscat Clearing and Depository Company, audit and law firms and the companies operating in the field of securities.
However, in relation to the questions raised on social media by investors and those interested in investing on the Muscat Stock Exchange on the fate of the decision, a new Circular 11/2022 was issued announcing the extension of the suspension of the collection of withholding tax on dividends and interest for a further period of five years till 2025 (i.e no withholding tax will apply during these years). The CMA clarified that this decision to extend suspension till 2025 was taken as part of the economic stimulus plan.