Oman has announced a five-year withholding tax waiver on maritime service contracts aboard Omani-flagged vessels to attract global shipping and investment, reports the Times of India.

The initiative, effective from September 1, 2025 to August 31, 2030, aims to reduce operational costs for shipping firms and enhance Oman's appeal as a regional maritime hub. It applies to vessels officially registered with Omani authorities.

The tax relief is expected to encourage more ships to register under the Omani flag, increase port activity, and attract specialised investment in ship maintenance, logistics, and maritime services.

The measure supports Oman's broader economic diversification goals under Oman Vision 2040, which seeks to reduce dependence on hydrocarbons and promote sustainable growth.

The Oman Tax Authority said the policy directly addresses the needs of the maritime transport industry and strengthens the country's competitiveness against regional peers.

Shipping companies and investors may benefit from lower service costs, improved regulatory conditions, and faster decision-making during the five-year window. The long-term impact will depend on future tax policies and infrastructure development beyond 2030.