Oman - Islamic law (Sharia)
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Oman taxes

If you want to do business in Oman, reading this will help you becoming knowlegeable on the specific tax laws and rates for a LLC (OOD) which is the most common legal entity in Oman.

The country taxes income earned outside the borders in the same way than if it were earned inside the country. The predominant rate for income remitted back, from our research, and these things do change, is 15%. Oman may not have exemptions to remit profits accrued abroad. Taxes are reasonable in Oman because the income corporate tax rate is 15%. This ranks Oman as 47th overall in terms of corporate tax rate worldwide.

The value added tax (VAT) rate in Oman is 5.00%, which ranks Oman as 27th overall with regards to value added tax rate worldwide. In terms of other taxation, an employer will contribute 11.50% to the equivalent of a social security fund and an employee will contribute 7.00%. The overall complexity of the tax system is low. This is measured by average time to comply with a country's labor tax requirements is as it is 12hours. Contributing to this is the number of yearly labor tax payments, which is 11 in OM.

Thin capitalisation rules are officially enacted. Thin capitalisation refers to any type of requirements on a business and the debt-to-asset ratios. Dividends from resident companies are not taxable. Dividends received from foreign companies are included in corporate income tax base. A dividend is a payment of earnings of the legal entity, determined by the board, to a particular class of shareholders. Dividends can be one of the following shares of stock, cash payments, or other property. Capital Gains are usually subject to corporate income tax, except those from the sales of securities listed on the Muscat Securities Market, which are exempt. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 10%. This means that the relevant tax authorities expects LLC (OOD)'s to pay tax on 10% of interests paid to non-residents. The dividends withholding tax rate is 10%. Which means that the taxman expects legal entities to pay tax on 10% of dividend payments remitted abroad. The royalties withholding tax rate is 10%. This should be interpreted that usually the taxman expects legal entities to pay tax on 10% of royalty payments abroad.
There is no known tax on wealth in Oman. There are no inheritance, transfer and real property taxes in Oman. There are not many popular and well known credits for innovation spend that include breaks on taxation in OM.

The above is not tax or legal advice for your company tax obligations. We can to point you to an accountant in Oman who can properly advise you. Ready to get started? Click incorporate now if you are in a hurry, or press the free consultation button above.

It takes approximately 56 hours to file and prepare documents for a Oman Islamic law (Sharia).
The corporate tax is approximately 15% which is 48 in the world.

Owners of a company in Oman are not allowed to carry back a loss and may be allowed to carry forward a loss for 5 years.

The vat rate in Oman is 5% which ranks 26 in the world.

Patent box
RND credit
Wealth tax
Estate tax
Transfer taxes
Asset taxes
Capital duties
23Tax treaties
15%Offshore Tax
15%Corp rate
-Loss carryback years
56Corporate time
5%VAT rate
15%Capital gains
NoAEOI planned

Read this to learn about incorporating a company in

We can help you form a company in Oman. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Oman, which is required by law.

Oman Tax Treaties

CountryTypeDate signed
DTC 2001-04-12
DTC 2002-03-25
DTC 1999-06-12
DTC 2008-12-16
DTC 1900-01-01
DTC 2003-10-06
DTC 2012-08-15
DTC 1998-03-30
DTC 1989-06-01
DTC 2006-05-31
South Korea
DTC 2005-09-23
DTC 2001-11-26
DTC 1997-04-02
DTC 2004-06-30
DTC 1997-11-16
DTC 1998-05-06
DTC 2006-12-15
United Kingdom
DTC 1998-02-23
DTC 2003-09-13
Japan DTC 2014-01-09
DTC 2009-10-05
DTC 2009-06-28
South Africa
DTC 2002-10-09

Country Info

National Flag of
سلطنة عمان (ara)
Area Code
Western Asia
Native Languages