Corporate Tax in Oman (2026 Legal Guide) — Rules & Requirements
About this article
Sourced from Omani royal decrees, ministerial decisions, and the Basic Statute of the State. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
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 business exemption: Companies with annual income below OMR 30,000 may benefit from a simplified tax regime and reduced compliance requirements.
- Filing deadline: Tax returns must be filed with the Tax Authority of Oman 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 with the Tax Authority.
What to Do If Your Business in Oman Receives an Unexpected Corporate Tax Demand
- Register with the Tax Authority of Oman 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.
About Tax Rights in Oman
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.
Common Questions
What is the corporate income tax right in Oman?
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 business exemption: Companies with annual income below OMR 30,000 may benefit from a simplified tax regime and reduced compliance requirements.Filing deadline: Tax returns must be filed with the Tax Authority of Oman within 4 months after the end...
When does it apply — corporate income tax?
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 with the Tax Authority.
What should I do if the Tax Authority of Oman issues my business a corporate tax demand I was not expecting?
Register with the Tax Authority of Oman 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 — corporate income tax?
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.