Oman

Oman unveils Capital Market Incentives Program to boost economic growth

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Oman's Financial Services Authority (FSA) has launched the Capital Market Incentives Program (CMIP), a transformative initiative aimed at invigorating investment and broadening participation in Oman's capital market. This strategic program is designed to provide businesses of all sizes—from large corporations to SMEs and start-ups with tailored pathways to engage with the Muscat Stock Exchange (MSX) while benefiting from significant tax incentives.

Pathway Highlights:

  • 1.

  • For Large Businesses:

    Convert to public joint stock companies (SAOGs) and enjoy a two-thirds income tax refund for five years, effectively reducing the tax rate from 15% to 5%. This pathway is designed to support companies with a market value exceeding RO 10 million, offering a substantial tax saving and flexible payment options.

  • 2.

  • For Emerging Companies:

    SMEs and start-ups can list on the newly introduced MSX-AIM, a platform dedicated to supporting smaller and growing businesses. Eligible companies can benefit from a one-third income tax refund for five years, lowering the tax rate from 15% to 10%. This pathway is targeted at companies with a market value over RO 0.5 million, encouraging innovation and growth in the capital market.

  • 3.

  • For LLCs:

    Private companies can convert to closed joint stock companies (SAOCs) and receive a one-third income tax refund for two years, reducing the tax rate from 15% to 10%. This option is ideal for smaller companies seeking to transition to a more structured corporate model, with a market value of at least RO 0.5 million.

These pathways offer unique opportunities for businesses to align with Oman's economic vision while reaping substantial financial benefits. By participating in the CMIP, companies can position themselves for growth, enhance their market presence, and contribute to the broader economic development of Oman.

Businesses planning to be listed on the stock exchange should explore these pathways to capitalize on the substantial tax benefits and other incentives offered by the program.

At Premier Brains, we assist with the conversion process, optimize tax benefits, and ensure compliance with regulatory requirements. Let us help you leverage these opportunities for growth and success

Reference https://fsa.gov.om/Home/PublicPage/Programefinition

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