- The deductible expenses are those incurred for the purpose of producing the gross income, whether paid or not. The following expenses may not be deducted:
- Expenses not related to the production of the gross income.
- Reserves and provisions other than the provision for loan losses in the case of banks and financial institutions licensed to practice banking businesses in Oman and certain technical provisions of insurance companies.
- Capital expenditures, except those deductible under the Law.
- Expenses related to the production of the exempted income under the Law or any other Law.
- The income tax payable or paid in the Sultanate or in any other country.
- Costs or losses, if such costs were recovered or compensated under a contract, an insurance policy, a judicial ruling, etc.
- A loss resulted from the disposal of securities listed in Muscat Securities Market.
- Any amounts considered by the Secretariat General for Taxation as not reasonable by reference to the value of the services rendered or other consideration related to such services.