Oman: Contracts and Commercial Law

Before the issuance of Tax Authority Decision No. 180/2026, the deductibility of business expenses in Oman was governed by the general rules set out in Article 18 of the Executive Regulations of the Income Tax Law. Among other things, those rules require that an expense be genuine, relate to the taxpayer's business, be necessary to generate income, and be supported by appropriate documentation.

Many investors view VAT in Oman as a compliance issue that arises only after a business has been established or operations have commenced. In practice, however, VAT considerations often arise much earlier and can influence fundamental investment decisions, including transaction structuring, target company valuations, intra-group arrangements, and the project's financial model.

Farah Al Qubtan is a legal professional with expertise in corporate and commercial advisory, commercial disputes, and company formation. She holds an LLB from the University of Reading and completed her Legal Practice Course at the University of Law in London.

Oman has opened the door wider for foreign investors in recent years, with fewer ownership restrictions and a more straightforward set-up process.

Many types of bonds are used in Construction projects such as Tender Bonds (sometimes called Bid Bonds), Advance Payment Bonds and Performance Bonds.

Defects in building materials disputes arise for several reasons, such as the poor quality of the materials or their non-conformity with the agreed specifications.

The new Commercial Companies Law (CCL) in Oman was enacted by the Royal Decree Number 18 of 2019, (the Law)

The new Commercial Companies Law (CCL) in Oman was enacted by the Royal Decree Number 18 of 2019, (the Law)…

The Standard Form of Construction Contracts in routine use in Oman since 1999 is old viz.