Muscat: The Tax Authority has issued Decision No. 313/2025 introducing amendments to certain provisions of the executive regulations of the Corporate Income Tax Law, as part of ongoing efforts to enhance the tax system and strengthen the role of corporate social responsibility.

The decision includes amendments to Article 33 of the law by adding a new provision that allows the deduction of cash or in-kind donations made to registered endowment (waqf) institutions in accordance with the Endowments Law issued under Royal Decree No. 65/2000. The new amendment aims to support officially registered waqf institutions and encourage community-driven contributions through regulated channels.

Prior to this amendment, Article 33 permitted tax-deductible donations in only three cases: donations made to ministries or other government units; donations made to officially registered charitable societies under Royal Decree No. 14/2000; and donations made to organisations operating in the sports sector under Royal Decree No. 81/2007.

With the introduction of the new decision, the total number of categories eligible for deductible donations has now increased to four, with the inclusion of registered waqf institutions.

The Tax Authority clarified that deductible donations must not exceed five per cent of the total taxable income for the tax year. Companies and establishments can also record the value of donations made during the year when completing their annual income tax return, using the designated fields.

The amendment reflects the authority’s commitment to continually improve tax legislation while encouraging the private sector to actively contribute to social and humanitarian initiatives in line with national regulations.

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