What Taxes are applicable in Oman?
The Secretariat General for Taxation (SGT) is responsible for applying and regulating the relevant taxation laws in Oman. Tax Investigation and Assessments are made by the Directorate General within the SGT. Both the Secretariat General for Taxation (SGT) and the Directorate General departments are considered branches of the Ministry of Finance of Oman.
What is Corporate Income Tax in Oman?
Currently, the main tax cost to businesses in Oman is corporate income tax (Corporation Tax), applicable at a rate of 15% on all taxable profits (a special provisional rate of 55% applies to income derived from the sale of petroleum).
Corporate income tax is charged on all sources of income (including capital gains) of a company or an establishment or a Permanent Establishment, earned in Oman. A Permanent establishment (‘PE’) is defined as a fixed place of business through which a business is wholly or partly carried out in Oman by a foreign person.
What is Withholding Tax in Oman?
A 10% withholding tax is applied at source to amounts paid or credited to foreign persons that do not have income attributed to a permanent establishment in Oman for the following categories of income:
- Management fees.
- Fees for the performance of services. There are exemptions allowed here for the following purposes
- Participation in organisations, conferences, seminars and exhibitions
- Insurance thereon
- Air tickets and accommodation abroad
- Board of directors’ meetings
- Reinsurance payments
- Services in connection with an activity or property outside Oman
- Consideration of fees used for research and development
- Fees for the use of or right to use computer software
- Dividends and interests (temporarily suspended with effect from 6 May 2019 through a Royal Directive).
What is Personal Tax in Oman?
Income is currently not subject to personal income taxes in Oman and there is no requirement to file income tax returns.
What are the Tax Exemptions in Oman?
Tax exemptions have been generally annulled by the introduction of Royal Decree 09/2017. The only category now eligible for exemption is industrial activities.
Is there Value Added Tax (VAT) in Oman?
VAT is expected to commence in 2020, following the agreement by 6 GCC member states and introduction of VAT in the KSA, UAE and Bahrain.
Other taxes may be implemented in the future. Imports are subject to excise charges but may benefit from preferential treatment, suspension arrangements or exemptions.
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