The revised Code of Corporate Governance (‘Code’) issued by the Capital Market Authority was effective for Publicly Listed Companies with effect from July 2016. The revised code enhances the overall framework of the existing Code and urges the public companies to display greater standards of compliance to ensure investor protection. The Code is built on a 14 principle framework, with each principle detailing terms and requirements for compliance. As with the previous code, the revised code requires the external auditor to certify if the company is in material compliance with the requirements of the Code. Some of the salient features of the Code are as follows:
•    Board Members to be Non-Executive;
•    Criterion of Independent Directorships to be also based on shareholding percentage (10% or above);
•    Annual Evaluation of Board to be mandatory and undertaken by an external consultant;
•    Establishment of Nomination & Remuneration Committee as a sub-committee of Board;
•    Prior approval of all related party transactions by the Board
•    Role of Company Secretary has been well – defined.



Amendments to Income Tax Lawissued by Royal Decree number 9/2017 on 19 February 2017, which is effective from1 January 2017 aims at addressing certain challenges in the existing tax system.Major amendments are:


Current Law
Tax is payable at 12% above the basic exemption threshold of RO 30,000
For both Omani Companies and foreign Companies
•    Basic tax exemption of RO 30,000 withdrawn;
•    Tax rate for Omani companies and foreign entities are increased to 15%;
•    Small entities complying with certain conditions to be taxed at 3%.


Withholding tax is payable at 10% on payments made to foreign suppliers towards the following categories of payments:
Current Law
•    Royalties;
•    Management fees;
•    Consideration for research and development; 
•    Consideration for the use of or right to use computer software
Apart from the above four categories, withholding tax is also payable on the following overseas payments:
•    Dividend payments;
•    Interest payments;
•    Fees paid for services carried out in Oman by a foreign person / entity.


Current Law definition
A foreign person that provides consultancy service or any other services in Oman for a period or periods of not less than ninety days in the aggregate in any twelve months whether directly or through employees of that person or other designated by that person to perform such services.
Amended definition
Definition of PE has been amended to be consistent with global practices. A foreigner residing in any construction site in Oman or assembling project is not considered as PE unless the site or the project lasts for a duration of more than 90 days.