Bank Accounts website
Flag Theory website
We are not currently operating in this jurisdiction.
For a full list of countries where we operate, please click below.

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.

Country details

Oman
OMR
Muscat
Asia
Arabic (Oman), English, bal, Urdu
2,967,717

Tax treaties

Country Type Date Signed
Lebanon DTC  2001-04-12
China DTC  2002-03-25
Pakistan DTC  1999-06-12
Belgium DTC  2008-12-16
Croatia DTC  1900-01-01
Singapore DTC  2003-10-06
Germany DTC  2012-08-15
Mauritius DTC  1998-03-30
France DTC  1989-06-01
Turkey DTC  2006-05-31
Korea, Republic of DTC  2005-09-23
Russian Federation DTC  2001-11-26
India DTC  1997-04-02
Canada DTC  2004-06-30
Tunisia DTC  1997-11-16
Italy DTC  1998-05-06
Morocco DTC  2006-12-15
United Kingdom DTC  1998-02-23
Seychelles DTC  2003-09-13
Japan DTC  2014-01-09
Netherlands DTC  2009-10-05
Brunei Darussalam DTC  2009-06-28
South Africa DTC  2002-10-09

Tax treaties Map

>

Disclaimer

Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

Newsletter

Flag Theory is an internationalization and offshore solutions provider, and the creator of incorporations.io. We offer expert consultation advice and assistance.

Your privacy is important for us and we will keep your information secure. View our privacy policy

View past newsletters

Consultation with

Flag Theory is an internationalization and offshore solutions provider, and the creator of incorporations.io

In order to better serve you, we ask that you please fill out the following form as accurately as you can and provide as many details as possible. Thank you.

Your privacy is important for us and we will keep your information secure. View our privacy policy