02/08/2026
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The Oman Tax Authority has issued Decision No. (180/2026), amending the Executive Regulations of the Income Tax Law for Companies and Institutions by introducing Article (18 bis). Effective from the tax year beginning 1 January 2027, the decision establishes new conditions that must be met for business expenses to qualify as deductible for income tax purposes.
Under the new provisions, deductible expenses must:
✔ Be incurred wholly for the purpose of carrying on the commercial activity.
✔ Be exclusively authorized for deduction by the Chairman of the Tax Authority.
✔ Not arise from any breach of legal or regulatory obligations, regardless of their source.
📌 What this means for businesses:
Companies should review their expense policies, strengthen supporting documentation, and ensure that all deductible expenses are aligned with the new regulatory requirements before the rules take effect.
Preparing early will help businesses minimize tax risks, enhance compliance, and ensure that legitimate business expenses remain deductible under the updated Income Tax Regulations.
