CMA Issues Circular on Extension of Suspension of Withholding Tax on Dividends and Interests

The Capital Market Authority has issued a circular addressed to the general public of investors, public joint stock companies, Muscat Stock Exchange, Muscat Clearing and Depository Company, audit and law firms and the companies operating in the field of securities.

Circular 11/2022 advised the extension of suspension of collection of withholding tax on dividends of shares, returns on Sukuk and interests on bonds, which ended on May 6, 2022.

The circular stipulates “The Capital Market Authority has recently noticed the questions raised in the social media by investors and those interested in investing on the Muscat Stock Exchange on the fate of the decision to suspend the collection of withholding tax at 10% of the dividends on shares, returns on Sukuk and interests on bonds, which ended on May 6, 2022.

The CMA would like to clarify that this decision was abolished by decision of the Council of Ministers as part of the economic stimulus plan and was extended to 2025. And, for the purposes of furnishing appropriate environment to achieve the Oman Vision 2040 as instructed by His Majesty Sultan Haitham Bin Said, May Allah protect him, the CMA is on continuous communicating with the concerned entities to properly address this matter and other related issues that would enhance the ability of the capital market in the Sultanate of Oman to grow and compete in attracting foreign capital to finance economic projects.”