PKF International

Corporate Taxation

Only Commercial Companies are liable to pay income tax in Oman. There is no personal income tax, fringe benefit tax, gift tax, wealth tax or any form of estate duty, and there is no sales tax or value added tax.

Under the new Income Tax Law of Oman, income-tax rate applicable to any business establishment, Omani company or Permanent Establishment (i.e. foreign branch), for any tax year ending after 31st December 2009 would be as under:

Taxable/assessed income Tax rate
Upto RO.30,000/-   
Tax Free
Over RO.30,000/-
Flat rate of 12%

 

As per the new Income Tax Law of Oman, withholding tax shall be charged on the following types of income accruing or arising in Oman:

  • Royalties.
  • Consideration for research and development or for the use of or right to use computer software or as fees in return for management.

 

Any Omani tax payer that has paid or credited any of the amounts as specified above shall be liable to deduct withholding tax (@ 10% of the gross amounts) from the gross amount paid or credited to the account of any foreign person that does not carry on any business in Oman through a permanent establishment situated therein, and remit the same to the Secretariat General not later than 14 days from the end of the month in which the amount is paid or credited, whichever is earlier.