Corporate Income Tax
Written in plain language for general understanding. This is educational content, not legal advice. Based on Omani royal decrees, ministerial decisions, and the Basic Statute of the State.
Omani National Law
What is this right?
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), partnerships, and sole proprietorships operating in Oman.
- Taxable income: Net profit after allowable deductions (business expenses, depreciation, bad debts).
- Small businesses: Companies with annual income below a certain threshold may benefit from simplified compliance procedures.
- Filing deadline: Tax returns must be filed within 4 months after the end of the accounting year.
When does it apply?
- You own or operate a business in Oman — the 15% corporate tax applies to your profits.
- You are a branch of a foreign company doing business in Oman.
- Your accounting year has ended and you need to file a return.
What should you do?
- Register with the Tax Authority and obtain a tax card.
- Keep proper accounting records — you must maintain books for at least 10 years.
- File your return within 4 months of your year-end and pay any tax due.
- Hire a qualified accountant or tax adviser to ensure accurate filings.
What should you NOT do?
- Do not miss the filing deadline — late filing incurs penalties of OMR 100 per month of delay.
- Do not claim personal expenses as business deductions — the Tax Authority audits these carefully.
- Do not fail to register — operating without a tax card is an offence.
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