Three new free zones established

MUSCAT: His Majesty Sultan Haitham bin Tarik has issued two Royal Decrees.

Royal Decree No 10/2022 establishes free zones at Muscat International Airport and in the airports of Sohar and Salalah.

Article (1) states that free zones shall be established as follows:

A free zone at Muscat International Airport to be named “Muscat International Airport Free Zone”.

A free zone at Sohar Airport to be named “Sohar Airport Free Zone”.

A free zone at Salalah Airport to be named “Salalah Airport Free Zone”.

The free zones will be set up in the designated land plot according to the layouts attached, which are specified in the concluded concession agreements.

Article (2) states that the Council of Ministers shall determine the Operating Party for the above-mentioned free zones (specified in the first article of this Decree) from among the companies reporting to Oman Investment Authority. These firms may seek the assistance of departments and companies specialised in the development, marketing, management and operation of those free zones.

Article (3) states that both of the Operating Party and firms shall be granted the incentives and privileges stipulated in the Law on Free Zones promulgated under Royal Decree No 56/2002.

Article (4) states that the Operating Party and the firms shall be granted a 15-year Income Tax waiver for each separate project, extendable for a further 5 years. In all cases, this waiver is not valid for banks, financial institutions, insurance and reinsurance companies or projects providing services in telecommunications, land transport or contracts.

Article (5) states that the waivers stated in Article 4 of this decree shall be issued vide a decision by the Chairman of the Tax Authority and in accordance with the rules, regulations and procedures endorsed by the Board of the Public Authority for Special Economic Zones and Free Zones, after the approval of the Ministry of Finance.

Article (6) states that the operating companies shall pay dues to the Operating Party in return for the services that the Operating Party renders to them. The Operating Party has to specify the value of the service fee and the method of its collection, after the Board of the Public Authority for Special Economic Zones and Free Zones approves the same.

Article (7) states that the Operating Party shall 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 coordinate with the Public Authority for Special Economic Zones and Free Zones to achieve the measures deemed necessary for the safety of individuals, operating companies, installations, goods and commodities within the purview of each zone, in addition to fully cooperating with the Public Authority for Special Economic Zones and Free Zones to observe the regulations governing the safety of the environment and the establishment of security.

Article (8) says that this Decree shall be published in the Official Gazette and enforced on its date following its date of publishing.

Royal Decree No 11/2022 on the ratification of an agreement between the governments of the Sultanate of Oman and Hungary on the encouragement and mutual protection of investments, signed in Muscat on 2 February 2022, after presenting the same to the Shura Council.

Article (1) ratifies the above-mentioned agreement in accordance with the version attached to this Decree.

Article (2) says that this Decree shall be published in the Official Gazette and enforced on its date of issue. – ONA