Tax Services in Oman

The Gulf Cooperation Council (GCC) region is made up of six member states as 

  • Kingdom of Saudi Arabia (KSA)
  • United Arab Emirates (UAE)
  • Kingdom of Bahrain (Bahrain)
  • State of Qatar (Qatar)
  • Sultanate of Oman
  • State of Kuwait (Kuwait) 

GCC countries are famous for their zero-tax beliefs, but on the contrary, the Sultanate of Oman is considered a "complex tax jurisdiction" as it imposes corporate tax on all the people living in Oman. 

While the Sultanate of Oman continues to not levy tax on salary or personal income, however, there are varied other taxes imposed, such as: 

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

Read this blog to learn more about the taxation in Oman.

How Does Taxation in Oman Work?

Taxation in Oman has a number of treaties in place with other neighbouring countries. Oman's major revenue is based on corporate tax; 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 three elements:

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

Withholding tax in Oman

With holding tax in Oman is applied 10% on the payments of the following services to ex-pats:

  • 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 GCC member states apply a Unified Customs Law and Common Customs Law Tariff with a standard rate of 5% on insurance, freight value, and goods cost, but with a few exceptions, such as tobacco and alcoholic products are subject to a customs duty rate of 100%. 

This law does not apply to the products exported from Oman. Also, the goods imported into Oman's special economic zones and free zones may be exempt from customs duty in Oman, which means it does not have any Oman tax rate.

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. 

The Oman companies are also subjected to pay tax on their international income. The Oman corporate tax rates are as follows:

  • First OMR 30,000 of taxable income: 0%
  • Above OMR 30,000: 12%

VAT in Oman

VAT in Oman has a standard rate of 5% on goods and services supplied in Oman, subject to specific exemptions and zero ratings prescribed under Oman VAT law.

Our Taxation Services in Oman

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

  • Preparing the periodical tax filing statements and forms
  • Submitting the same to the appropriate authorities
  • 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 your company, we at Business Setup Worldwide are at your service. Our advisors are well-versed with the taxation in Oman framework and will promptly file all the taxes before the due date. Contact us today, even if it's for friendly advice.


How much is the VAT used in Oman?

The percentage of VAT used in Oman is 5.

Which is the best investment in Oman?

Real estate is the best investment in Oman.

How many businesses are there in Oman?

More than 78,000 small and medium enterprises have been registered in the Sultanate of Oman.

Why is Oman considered to be a favourable place to do business?

Oman is considered a good place to do business because it offers favourable tax and investment laws, which improves the ease of doing business.