Tax Rights
Corporate income tax, VAT, social security, free zone incentives, and tax disputes under Oman tax law. No personal income tax.
Covered in this guide:
You pay no personal income tax in Oman. Businesses face 15% corporate income tax on profits under the Income Tax Law (Royal Decree 28/2009), with a small business exemption under OMR 30,000. 5% VAT applies to most goods and services under Royal Decree 121/2020 — you must register if turnover exceeds OMR 38,500. The Tax Authority of Oman runs everything. Withholding tax of 10% applies to non-resident royalties and management fees. Free zones (Duqm, Sohar, Salalah, Al Mazunah) get tax holidays. Object to assessments within 45 days, then appeal to the Tax Committee.
Key Laws
Royal Decree 28/2009
Income Tax Law (as amended by RD 9/2017)
15% corporate tax; small business exemption under OMR 30,000
Royal Decree 121/2020
Value Added Tax Law
5% VAT — last GCC state to implement (April 2021)
Royal Decree 26/2019
Tax Authority of Oman Establishment
Tax Authority powers, audits, and enforcement
PASI Social Insurance Law
Public Authority for Social Insurance
11.5% employer + 7% employee contributions for Omanis
Corporate Income Tax
Oman levies a corporate income tax on business profits:Tax rate: A flat rate of 15% on taxable income for all companies and establishments.Who pays: All companies (Omani and foreign-owned), partnershi...
No Personal Income Tax
One of Oman's most important tax features is the absence of personal income tax:No tax on salaries: Individuals do not pay income tax on their employment income, wages, or salaries in Oman — neither O...
VAT Obligations
Oman introduced a 5% Value Added Tax in April 2021 — the last GCC state to implement VAT, following Saudi Arabia, UAE, and Bahrain:Standard rate: 5% on most goods and services.Zero-rated items: Certai...
Tax Registration and Compliance
All businesses in Oman must register with the Tax Authority of Oman and comply with tax obligations:Tax card: Every business must obtain a tax card from the Tax Authority within 3 months of starting o...
Tax Audit Rights
If the Tax Authority of Oman audits your business, you have rights during the process:Advance notice: The Tax Authority should provide reasonable notice before conducting an audit.Scope limitation: Th...
Tax Refund Claims
If you have overpaid tax in Oman, you can claim a refund from the Tax Authority:Income tax refunds: If your assessed tax is less than the amount paid (e.g., due to excessive provisional payments), you...
Free Zone Tax Incentives
Oman offers attractive tax incentives for businesses operating in designated free zones and special economic zones:Income tax exemptions: Businesses in free zones may be exempt from income tax for up...
Tax Dispute Resolution
If you disagree with a tax assessment, Oman provides a structured dispute resolution process through the Tax Authority:Objection: You can file a written objection with the Tax Authority of Oman within...