A royal directive that gives tax breaks to new investors who establish tourism initiatives in the governorate of Musandam, Oman has been announced.The royal decree that was issued by Oman’s ruler HM Sultan Qaboos Bin Said is aimed at boosting Musandam’s tourism segment “while also driving in potential investment opportunities”.
Under the decree, investors will now be allowed exemption from customs duties covering building materials, tools and equipment that are essential during the construction phase of their tourism-related projects. The decree also includes exemption from the four percent tourism tax, the five percent municipal tax and the 15 percent company income tax — starting from the actual start of the project to its first ten years of operations.The royal decree will take effect in June this year.
Speaking about the new decree, Eng. Mohammed bin Mahmoud Al Zadjali, Director General - Investor Services and Quality Control, Ministry of Tourism in Oman, said, "The directive plays a key role in the move to achieve the country's development goals, which includes the promotion of the tourism segment as part of the Ninth Five-Year Plan (2016 - 2020) that aims to reduce the dependency on oil."Al Zadjali added that the latest set of exemptions will attract more tourism investments to Musandam. Significant development is expected to happen in the level of services, activities, tourism facilities and entertaining facilities in Musandam.