Muscat, Oman – October 23, 2025 – Oman has launched a five-year tax break on service contracts for Omani-flagged ships. The Oman Tax Authority announced the policy, which starts now and lasts until August 31, 2030.

The rule removes withholding tax on payments for services provided on board registered Omani vessels. This helps cut costs for ship owners and makes Oman more attractive to global shipping companies.

Why It Matters

Oman sits on key trade routes between Asia, Europe, and Africa. Its ports, like Salalah and Duqm, handle millions of containers each year. The tax relief will:

  • (a) Lower operating costs
  • (b) Encourage more ships to register under the Omani flag
  • (c) Boost jobs in shipping, repairs, and logistics
  • (d) Support greener and modern fleets

Experts say it could bring up to $200 million in new investments and create thousands of jobs.

Part of a Bigger Plan

This fits Oman Vision 2040, the country’s goal to grow beyond oil. The government is also easing rules for foreign investors and expanding special economic zones.

What’s Next

Shipping companies worldwide welcome the move. Local firms are already planning to add new vessels. Oman aims to become a top logistics hub in the region.

With this tax break, Oman is making it easier and cheaper to do business in its growing maritime sector.

Practical Considerations for Businesses