Incentives

SOHAR Freezone offers a combination of incentives for investors to set up and operate their projects easily and flexibly, in an environment where business can flourish and prosper.

100% Foreign Ownership

A SOHAR Freezone working company must have a minimum of 2 shareholders, both of which may be foreign entities (natural or juridical).

Corporate Tax Holiday of up to 25 Years

Each working company has a guaranteed 10-year exemption of corporate tax (normally 12% in Oman). This exemption can be extended up to the duration of the lease contract if certain targets in Omanization are reached, which can be for up to 25 years.

One-Stop Shop for all Relevant Clearance

SOHAR Freezone offers a single window through which all licenses, permits and approvals can be obtained. In practice this means that Freezone clients require very little interaction with the various governmental institutions.

0% Import or Re-export Duties

No customs duties on goods brought into the Freezone. All customs processes are described in a dedicated set of Customs procedures.

0% Personal Income Tax

No customs duties for individuals coming in and working in the Freezone.

Low Capital Requirements

SOHAR Freezone maintains low capital requirements, which encourages start-up companies to invest with a lower core capital.

Relaxed Level of Omanization

Investors are allowed up to a maximum 85% foreign employees, a longer corporate tax exemption can be ensured if this percentage is lowered as follows:

  • reached 25% Omanization after 10 years
  • reached 35% Omanization after 15 years
  • reached 50% Omanization after 20 years
Free Trade Agreements with US and Singapore

Freezone companies could benefit from existing Free Trade Agreements between Oman and the USA, and Oman and Singapore, as their goods could receive preferential treatment while in transit.