Tuesday 24 / December / 2024
Muscat: The State Council today discussed the "Draft Law on Special Economic Zones and Free Zones". The discussion took place during the State Council’s 5th session of the second regular sitting of the Eighth Term.
The meeting was chaired by Sheikh Abdulmalik Abdullah Al Khalili, Chairman of the Council.
The State Council discussed its Economic Committee’s report about the “Draft Law on Special Economic Zones and Free Zones”. The law seeks to unify the legislative system of special zones and free zones.
The committee decided to grant the Public Authority for Special Economic Zones and Free Zones adequate flexibility to deal with future expansion in economic zones and free zones. This includes determining the regulatory frameworks of projects and steps to obtain related licenses and approvals.
The committee pointed out that the draft law was designed to streamline income tax exemption policies in a manner that makes them attractive for strategic projects. This includes amending the tax exemption period to be not more than 10 years and extendable for two similar periods.
The draft law also provides “basic connection with the size of the project and its added value”, as well as the unification of guarantees, benefits, incentives and exemptions to be granted to economic activities in special economic zones and free zones together, with special terms for economic zones where necessary.
