Halting tax at source on stock dividends makes MSX an attractive investment destination

Muscat: Abdullah Salim Al Salmi, CEO of the Capital Market Authority (CMA), said that the Royal orders to suspend the application of Tax Deducted at Source (TDS) on dividends and interest on Sukuk and bonds, to the advantage of foreign investors, affirms His Majesty Sultan Haitham bin Tarik’s keenness to provide all factors that enhance the investment environment and make Muscat Stock Exchange (MSX) an attractive investment destination for foreign capital.

The Royal directives also contribute to enhancing the stock market’s role as a tool for financing economic projects envisaged by Oman Vision 2040, he added.

In a statement to the Oman News Agency (ONA), Al Salmi pointed out that the Royal orders provide for the introduction of amendments to the Income Tax Law. It will help exclude this income from being subject to this tax. Such a step, he said, would enhance the confidence of foreign investors in the investment climate in the country, he added.

Al Salmi pointed out that the Royal directives are consistent with the national priorities guiding the executive plans of government departments to focus on attracting funds and encouraging investment. They give the Omani capital market a competitive advantage to attract direct and indirect foreign investments to the Sultanate of Oman, he explained.