Oman’s Sultan has issued Oman Sultani Decree No. 10/2022 to establish a free zone at Muscat International Airport and Sohar and Salalah airports.
They will be established in the designated land plot according to the relevant layouts and concession agreements.
The Council of Ministers will determine the Operating Party for these free zones from companies who report to the Oman Investment Authority. These companies may seek the assistance of departments and companies specialising in the development, marketing, management and operation of those free zones.
Both the Operating Party and companies will be granted the incentives and privileges specified in Oman Sultani Decree No. 56/2002 (the Law on Free Zones).
The Operating Party and companies will be granted a 15-year Income Tax waiver for each separate project. This can be extended for an additional five years. The waiver is not valid for banks, financial institutions, insurance and reinsurance companies or projects providing telecommunications, land transport or contract services.
The waivers will be issued by a Decision of the Chairman of the Tax Authority and in line with the rules, regulations and procedures approved by the Board of the Public Authority for Special Economic Zones and Free Zones, following the approval of the Ministry of Finance.
The operating companies will pay amounts owed to the Operating Party in return for the services the Operating Party provides to them. The Operating Party has to specify the value of the service fee and the method of its collection once the Board of the Public Authority for Special Economic Zones and Free Zones has approved it.
The Operating Party will stick to governing aerial affiliation regulations and requirements for safety and security of civil aviation under the supervision of the Civil Aviation Authority.
The Operating Party has to work with the Public Authority for Special Economic Zones and Free Zones to achieve the measures considered necessary for the safety of individuals, operating companies, installations, goods and commodities within the purview of each zone. They also have to fully cooperate with the Public Authority for Special Economic Zones and Free Zones to observe the regulations governing environmental and security protection.
The Decree will be published in the Official Gazette and come into force the day after it is published.
Also reported in Shabiba on 2 March 2022. For full story, click here.
To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.
Want to learn more about Lexis® Middle East? Visit, https://www.lexis.ae/lexis-middle-east-law/.