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Legal issue
The published principle treated profits derived from an equity participation in another Omani or foreign company as exempt, irrespective of where that company operated.
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Published principle
The Arabic text published by the Supreme Court is the primary source. The English translation was published by the Technical Bureau; Russian and Chinese are unofficial Smart Global Capital editorial translations.
This is a published legal principle—an extract selected by the Supreme Court of Oman Technical Bureau—not the full text of the judgment.
Article 8 of Royal Decree No. 47/1981, in the version applied by the Court, exempted profits received by a company as a result of its participation in the capital of another company, whether Omani or foreign and whether operating inside or outside Oman. Because the provision was general and unrestricted, it could only be limited by an express exception or condition.
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Applicability
This is a historical holding interpreting Royal Decree No. 47/1981, not confirmation of a current exemption. The Income Tax Law, transitional rules and character of the distribution applicable to the relevant tax year must be checked. This is an editorial four-language account of a published principle, not a full judgment translation.
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Related instruments
- Royal Decree No. 47/1981, Article 8, in the version applied by the Court
- Current Income Tax Law
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