Amended Corporate Income Tax Regulations: Key Impacts for Businesses and Investors in Oman
Muscat: The Tax Authority has issued Decision No. 313/2025, introducing amendments to the executive regulations of the Corporate Income Tax Law. These changes are part of ongoing efforts to improve the tax framework and reinforce corporate social responsibility.
The decision modifies Article 33 by adding a new provision that permits the deduction of cash or in-kind donations made to registered endowment (waqf) institutions, as defined under the Endowments Law issued by Royal Decree No. 65/2000. This amendment is designed to support officially registered waqf institutions and encourage community contributions through formal, regulated channels.
Previously, Article 33 allowed tax-deductible donations in three specific cases: donations to government ministries or units; donations to officially registered charitable societies under Royal Decree No. 14/2000; and donations to entities operating in the sports sector under Royal Decree No. 81/2007.
With the new amendment, the total number of categories eligible for tax-deductible donations has increased to four, now including registered waqf institutions.
The Tax Authority emphasized that deductible donations must not exceed five percent of the total taxable income for the relevant tax year. Companies and establishments are required to declare the value of their donations in the appropriate fields when submitting their annual income tax returns.
This amendment underscores the Authority’s commitment to continuously enhancing tax legislation while encouraging the private sector to actively participate in social and humanitarian initiatives in accordance with national regulations.
Special Analysis by Omanet | Navigate Oman’s Market
The inclusion of registered waqf institutions as deductible donation recipients under Oman’s Corporate Income Tax Law opens new avenues for businesses to enhance their corporate social responsibility while optimizing tax benefits. This move creates strategic opportunities for investors and entrepreneurs to engage with socially impactful projects through waqf institutions, positioning themselves as responsible contributors to community development. Smart investors should now consider partnerships with registered waqf entities to leverage both tax deductions and positive brand positioning in Oman’s evolving socio-economic landscape.
