Tax Services in Oman

The Sultanate of Oman is one of the members of the Gulf Cooperation Council (GCC) region. The Sultanate of Oman is considered a "complex tax jurisdiction" as there are several taxes which  need to be considered for company registration in Oman, such as: 

  • Corporate Income Tax
  • Withholding Tax (WHT)
  • Value-Added-Tax (VAT) 
  • Customs Duties
  • Excise Tax

How Taxation affects Company Registration in Oman Work?

Taxation in Oman has a number of treaties in place with other neighbouring countries. if you are someone who has your business incorporated in Oman, you are subject to pay the taxes irrespective of your nationality.

The Oman tax comprises these five elements:

  • Withholding Tax in Oman
  • Customs Duty in Oman
  • Oman Corporate Tax 
  • VAT in Oman
  • Excise Tax

All of the above-mentioned tax varieties are explained below.

Withholding tax in Oman

Withholding tax is not applicable to domestic entities but is applicable to specific payments made to Non-residents. These include:

  • Management fees
  • Royalties
  • Consideration for the use of or suitable to use computer software
  • Dividends on shares or interests
  • Consideration for research and development

Customs Duty in Oman

The standard customs duty rate in Oman is 5%. However, certain goods are subject to different tax rates. Customs duties are imposed on non-GCC-sourced goods' cost, insurance, and freight (CIF) value. 

Oman Corporate Tax

The Oman corporate tax is charged on all sources of income on any type of business entity that earns and is incorporated in Oman. 

Introduced in the year 2022, the Oman companies are also subjected to pay tax on their international income. The Oman corporate tax rates of 15% for a company registration requirement should come under the following aspects:

  • The maximum gross income is OMR 100,000. 
  • The maximum amount of registered capital is OMR 50,000 at the beginning of the tax year.
  • The average number of employees during the tax year does not exceed 15.
  • Omani proprietorships and Limited Liability Companies (LLCs): These entities qualify for a reduced rate of 3% if they meet specific criteria (registered capital under OMR 50,000, gross income under OMR 100,000 annually, average employee count below 15).

VAT in Oman

Oman's VAT is applied on certain goods and services supplied in Oman, subject to specific exemptions and zero ratings prescribed under Oman VAT law, consistent with the GCC Unified Agreement. However, specific goods and services are subject to VAT exemptions and zero ratings. Exempt supplies are not subject to VAT charges. 

Excise tax in Oman

The Oman Tax Authority imposed an excise tax in June 2019, which includes the following products: 

  • Tobacco products, alcoholic beverages, pork and pork products, energy drinks - 100%
  • Sugar-sweetened beverages - 50%
  • Carbonated drinks- 50%

You need to consider these activities when opening a company in Oman. 

Our Taxation Services in Oman

We at Business Setup Worldwide utilize knowledge to provide companies with a range of effective solutions. Our services in Oman include: 

  • Submitting the documents to the appropriate authorities
  • Preparing the periodical tax filing statements and forms
  • Managing payments of the tax liabilities on behalf of the client
  • Handling basic queries, notices, or assessments from the tax office

If you are looking for tax-related solutions for setting up a company in Oman, we at Business Setup Worldwide are at your service. Our advisors are well-versed in the Oman taxation framework and will promptly file all the taxes before the due date. Contact us today, even if it's for friendly advice.

FAQs

Are there any tax exemptions?

Yes, Oman offers VAT exemptions and zero-ratings for specific goods and services. These include basic necessities like some foods and medicines, exports, and certain transportation services.

Which is the best investment in Oman?

VAT return deadlines depend on your tax registration category. Typically, they are filed quarterly, with payments due by the 15th of the following month.