Taxation in Oman
Businesses operating within designated Free Zones and Special Economic Zones can benefit from extended tax exemptions. For instance, the Duqm SEZ offers a 30-year
tax exemption, while the Sohar FZ provides a 25-year exemption.
Investment Basics
Oman has a free economy with no restrictions on investments or capital repatriation. Businesses in Oman must follow IFRS accounting standards. The FCIL Law allows 100% foreign participation in an Omani company.
Corporate Taxation
CIT - 15% (3% for small companies)
Branch tax - 15%, Capital gains tax - 15%
Dividends from Omani comp. are tax-free,
Dividends from foreign companies are taxable, 5 years non-renewable tax exemption for manufacturing activities.
Individual Taxation
An individual is tax resident in Oman if the individual is present in Oman for at least 183 days in a calendar year.
Neither residents nor nonresidents are subject to income or capital gains taxes in Oman.
Withholding Tax
Residents and non-residents are exempt from paying taxes on dividends and interest. Royalties are taxed at 10% for both residents and non-residents. Fees for technical services are taxed at 10% for both individuals and companies.
Value Added Tax
Standard rate 5%
Reduced rate 0%
VAT applies to transactions in
most goods and services.
VAT also applies to imports of
goods and services into Oman.
Tax Treaties:
Oman has ~ 30 tax treaties in force. The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting
(BEPS MLI) entered into force for
Oman on 1.11.2020.
"We diligently monitor global developments
and devise our financial policies in a manner that ensures harmonization with the sustainability
of the state`s public finances.
We aim to diversify income sources and achieve the ambitious
objectives outlined in Oman Vision 2040."
His Excellency Sultan bin Salem Al Habsi, Minister of Finance
"In recent years, the tax system in the Sultanate has witnessed many developments and legislative, administrative and organizational amendments that we wish will contribute to improving the efficiency and effectiveness of the tax administration in order to enable the Sultanate to keep pace with the global economic development and to support the economy growth." H.E. the Chairman's Statement
Location
SetupOman Team
Office No. 505, Building No. 1532, Road No. 3519, Block No. 235, Al-Khuwair, Muscat, Sultanate of Oman
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