Farah Al Qubtan is a legal professional with expertise in corporate and commercial advisory, commercial disputes, and company formation. She holds an LLB from the University of Reading and completed her Legal Practice Course at the University of Law in London.
An important Oman Supreme Court judgment highlights that Oman tax depreciation is not always determined only by the original design or construction materials of a building. The actual condition of the asset, its age, and the extent of wear and tear may also be relevant when determining the correct depreciation treatment under Oman tax law.
The dispute started after the Oman Tax Authority applied a 4% depreciation rate in Oman on the basis that the building was classified as a first-class building. The taxpayer argued that the building had been in use since the 1980s, had significantly deteriorated over time, and no longer maintained the same level of durability or operational condition originally associated with that classification. The taxpayer therefore argued that a 15% depreciation rate should apply instead of 4%.
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