- Tax Rate: The corporate income tax rate in Oman is a flat 15%. This rate applies to both resident and non-resident companies engaged in commercial, industrial, or professional activities within the country1.
- Special Provisions for Petroleum Companies: For companies involved in the sale of petroleum, a specific tax rate of 55% is applicable. However, this rate is based on the individual Exploration and Production Sharing Agreement between the Omani government and the petroleum company. The government covers the company’s share of income tax from withheld production amounts, so the tax is not directly borne by the company2.
- Small and Medium Enterprises (SMEs): Omani proprietorships (establishments) and limited liability companies (LLCs) that meet specific criteria are subject to a 3% tax rate and must file income tax returns2.
- registered capital does not exceed 50,000 Omani rial (OMR) at the beginning of the tax year
- gross income does not exceed OMR 100,000 for any tax year
- average number of employees during the tax year does not exceed 15
- taxpayer activities do not include air/sea transport; extraction of natural resources; banking, insurance, or financial services; public utility concessions; or other activities to be decided by the Minister of Finance after approval by the Council of Ministers.
- Local Income Taxes: There are no regional or local income taxes in Oman3.
Source:
(1) tradecouncil.org
(2) taxsummaries.pwc.com
(3) expatfocus.com
(4) Images by FreePik
