logo
Over 400 firms penalised in Oman for hidden trade

Over 400 firms penalised in Oman for hidden trade

Zawya05-05-2025
Muscat - The National Team for Combating Illicit Trade (NTT) has conducted audits of 581 commercial companies in three main governorates: Muscat, Dhofar, and North Al Batinah as part of the ongoing efforts to combat hidden trade and enhance the business environment.
These efforts resulted in the issuance of administrative penalties to 410 violating establishments. Meanwhile, 77 companies complied with the audit requirements by submitting the necessary documents, such as bank statements and lease contracts, bringing the response rate to 13.2 percent.
These governorates were selected based on the high density of commercial records. Muscat Governorate has 20,244, North Al Batinah 16,094, and Dhofar 16,094.
Nasra bint Sultan al Habsi, Director General of Commerce at the Ministry of Commerce, Industry and Investment Promotion (MOCIIP)
Nasra bint Sultan al Habsi, Director General of Commerce at the Ministry of Commerce, Industry and Investment Promotion (MOCIIP) and Head of the National Taskforce for Illicit Trade, confirmed that the campaign aims to combat hidden trade and promote economic integrity by combating the misuse of licenses and various professions, in addition to raising confidence in the economic system and increasing tax revenues.
She explained that the number of activities subject to monitoring reached 106, including those prohibited to foreign investment (except 20 activities), in addition to some service activities such as dental clinics and pharmacies, provided that the company has been established for five years.
Activities exempted from the ban include sectors such as tailoring, vehicle repair, hairdressing, laundry, flower sales, and pet care services.
The Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) has urged all institutions and commercial companies to open a bank account in one of the licensed banks in the Sultanate of Oman.
This is mandatory as per the Commercial Companies Law issued by Royal Decree 18/2019 and its executive regulations issued by Ministerial Decision 146/2021 and Ministerial Decision 412/2023 regarding combating hidden trade.
The Oman Chamber of Commerce and Industry (OCII) also stresses the need for all commercial institutions and companies to commit to opening a bank account in one of the banks licensed to operate in the Sultanate, as per the provisions of the Commercial Companies Law and ministerial decisions to combat hidden trade
2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (Syndigate.info).
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Oman streamlines business governance with key amendments to commercial companies regulations
Oman streamlines business governance with key amendments to commercial companies regulations

Zawya

timea day ago

  • Zawya

Oman streamlines business governance with key amendments to commercial companies regulations

In a significant move to enhance Oman's business regulatory environment, the Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) has enacted Ministerial Decision 245/2025, amending pivotal provisions within the existing Commercial Companies Regulation (Ministerial Decision 146/2021). These amendments, effective from 11 July 2025, target specific operational and administrative requirements for companies operating within the Sultanate, aiming to reduce bureaucratic hurdles and clarify governance structures. Speaking exclusively to the Times of Oman, a representative of Mohammed Ibrahim Law Firm, a leading law office in Oman, explained that 'the first major amendment overhauls the procedure for appointing external company managers in Limited Liability Companies (LLCs). Previously, Article 92 mandated that applications to appoint a non-partner manager, particularly if the manager was non-Omani, required not only the manager's written approval but also written consent from their current employer. The written consent requirement from the Employer has been eliminated entirely.' The revised Article 92 now states that 'the appointment may be registered through the Ministry's electronic system based solely on the written approval of the appointed manager.' In practice, this reflects a shift in procedure: since the employer is the one initiating the appointment, separate employer consent is now deemed inherent and no longer needs to be uploaded as a standalone document. 'This procedural refinement removes redundant documentation and enables LLCs to appoint managerial talent—both Omani and expatriate—with greater efficiency, while still preserving necessary employer oversight through the system itself,' said Dr. Mohammed Ibrahim Al Zadjali, the Founding Partner of Mohammed Ibrahim Law Firm. He further added that a completely new provision, Article 13bis, has been introduced to explicitly define the scope of individuals authorised to legally represent a company as its 'authorised signatory.' This crucial addition clarifies that valid signatories must fall into one of four defined categories: partners collectively or individually; the owner of the company's capital; any member of its board of directors; or its manager or any of its financial and administrative workers. 'This definition provides much needed certainty regarding corporate representation, reducing ambiguity in contractual and legal dealings. It ensures that only individuals with a demonstrable stake or formal role within the company structure possess the inherent authority to bind the company, thereby enhancing transactional security and mitigating risks associated with unauthorised representations.' Companies subject to the Commercial Companies Regulation are granted a six-month transitional period to align their internal structures and documentation particularly manager appointment records and authorised signatory designations with these updated requirements. Failure to comply after this deadline could expose companies to administrative penalties or challenges regarding the validity of managerial appointments or contractual signatures. These changes underscore Oman's proactive approach to improving its regulatory framework to support business growth and investment, the expert said. © Muscat Media Group Provided by SyndiGate Media Inc. (

Aldar welcomes new UAE tax depreciation decision as a positive step for real estate sector
Aldar welcomes new UAE tax depreciation decision as a positive step for real estate sector

Al Etihad

time4 days ago

  • Al Etihad

Aldar welcomes new UAE tax depreciation decision as a positive step for real estate sector

18 July 2025 15:15 ABU DHABI (ALETIHAD)Aldar has welcomed the UAE Ministry of Finance's new Ministerial Decision on Depreciation Adjustments for Investment Properties held at Fair Value, calling it a positive and progressive development for the real estate sector under the UAE Corporate Tax decision, issued under Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses, allows taxpayers who elect the realisation basis to deduct tax depreciation from their taxable income on investment properties held at fair value. The depreciation amount permitted will be the lower of the tax written down value or 4% of the original cost of the property per 12-month tax period, or prorated for shorter Ministry's move ensures tax neutrality by aligning deductions with those available to businesses using historical cost accounting, thereby promoting equity across different reporting standards. The decision also clarifies the application of tax depreciation in various scenarios including property transfers between related or third parties, developments, and claw-back events. This is expected to support clearer compliance planning and improved financial foresight for Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, praised the decision, saying: 'Aldar expresses its gratitude for the UAE Ministry of Finance for this progressive and well-calibrated step, which reflects a deep commitment to fairness, clarity, and international best practices in the implementation of the Corporate Tax Law. By enabling depreciation deductions for investment properties held at fair value, this decision creates parity between different accounting treatments, helping companies plan long-term capital deployment more effectively. It will also reinforce investor confidence, attract institutional capital, and enhance the UAE's standing as a transparent, competitive, and globally integrated investment destination—particularly for the real estate sector.' Aldar, which operates through two primary divisions—Aldar Development and Aldar Investment—holds a significant income-generating property portfolio across commercial, retail, residential, and logistics segments. As of 31 December 2024, Aldar Investment's portfolio had a gross asset value of Dh25.8 billion and generated Dh2.5 billion in EBITDA for the year.

MoF issues Decision on Depreciation Adjustments for Investment Properties held at Fair Value
MoF issues Decision on Depreciation Adjustments for Investment Properties held at Fair Value

Gulf Today

time4 days ago

  • Gulf Today

MoF issues Decision on Depreciation Adjustments for Investment Properties held at Fair Value

The UAE Ministry of Finance (MoF) has issued a new Ministerial Decision regarding Depreciation Adjustments for Investment Properties held at Fair Value for the Purposes of Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses. Under this decision, taxpayers (who elect for the realisation basis) can elect to deduct depreciation from their taxable income (hereafter known as 'tax depreciation') for investment properties that are held on a fair value basis. The tax depreciation deduction available will be the lower of the tax written down value of the investment property or 4 percent of the original cost of the investment property, for each 12-month tax period or otherwise prorated for part of the tax period, during which the relevant investment property is held, and will be available to taxpayers who hold investment properties prior to and/or after the introduction of corporate tax. The decision provides clarity as to the value upon which tax depreciation can be claimed depending on whether the investment property is transferred between related parties or third parties or has been constructed/developed by the taxpayer. The decision provides parity between taxpayers who hold investment properties on a historical cost basis, who can already benefit from a deduction for accounting depreciation, with those who hold investment properties on a fair value basis. To avail this benefit, this decision therefore requires taxpayers to make this irrevocable election in their first Tax Period beginning on or after 1 January 2025 in which they hold an investment property and such election will apply to all investment properties going forward. Given the realisation basis must have been elected for by taxpayers wanting to benefit from the tax depreciation election, and that the realisation basis election is generally made in the first Tax Period, the decision also allows for an exceptional window for taxpayers to opt in to elect for the realisation basis to avail the tax depreciation deduction. Finally, the decision provides guidance on when the claw-back of tax depreciation may occur in instances outside of a disposal of an investment property such that taxpayers are aware of their tax compliance obligations and are able to accurately assess their returns on investment property. The release of this decision reflects the Ministry's commitment in ensuring a level playing field for all taxpayers, thus enhancing the principles of tax neutrality and equity in the UAE Corporate Tax regime and ensuring such deductions are aligned with international best practice. WAM

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store