01
Income tax: base rate 15%
The official tax portal specifies 15% of net taxable income for institutions and commercial companies. This is not a turnover tax: the accounting result is adjusted according to the rules of the Income Tax Law, and the benefit or exemption must have a specific legal basis.
- Taxpayer
- Omani company and other persons within the legal perimeter
- Rate
- 15% of net taxable income
- Oil & gas exploration
- 55% under concession contracts and applicable rules
- Evidence
- Accounting, invoices, contracts, bank documents and adjustment calculations
02
From accounting profit to tax base
The expense must be related to the generation of income, documented and not subject to restrictions. Depreciation, reserves, remuneration to related parties, interest, fines, entertainment expenses and owner transactions are checked separately.
Sales, services, investment and other income according to the applicable rule.
Business purpose, document, period and absence of special prohibition.
Arm's-length terms, price calculation and supporting materials.
Origin, transfer and use are subject to the applicable conditions.
03
3% rate requires checking conditions
The official portal indicates 3% for small businesses subject to special criteria, including revenue and headcount indicators. It cannot be used just because the company is new or has a small turnover.
Before the calculation, the legal form, ownership, revenue, employees, type of activity and all other criteria of the current norm are recorded.
04
VAT: 5% as initial rate
The standard VAT rate is 5% for most goods and services, including imports. The law provides for zero-rated and exempt supplies. For export, international transport, financial services and real estate, qualification depends on conditions and documents.
- Standard rate
- 5%
- Zero-rated
- In particular, eligible export and international transport
- Exempt
- Certain financial services and residential real estate transactions
- Input VAT
- The deduction depends on the use in taxable activities and documents
- Registration
- Mandatory or voluntary - according to established thresholds and rules
05
Withholding tax on payments to non-residents
The official portal describes the withholding of 10% of the gross amount on certain payments to a non-resident without permanent establishment in Oman, including royalties, R&D, software, management fees, dividends, interest and services. The payer transfers the tax until the 14th day after the end of the month of payment or accrual.
- Rate
- 10% gross - if the payment is within the current perimeter
- Trigger
- Payment or credit - according to the applicable rule
- Deadline
- Until the 14th day of the next month
- Treaty
- Check agreement, residency and eligibility for reduced rate
- File
- Contract, invoice, tax residence certificate and qualification calculation
Categories and benefits could be changed by decisions of the authorities. Before payment, the current norm, agreement and actual nature of the service are checked.
06
Cross-border group
The legal name of the payment does not determine the tax result. Management fee, royalty, loan interest, cloud/software, service bundle and reimbursement are analyzed by function, place of execution, IP rights and evidence.
- Permanent establishment
- People, place, agent, project and duration
- Transfer pricing
- Functions, assets, risks and market price level
- Treaty access
- Residence, beneficial ownership and special restrictions
- Foreign tax
- Credit availability and payment confirmation
- VAT
- Reverse charge or imported circuit according to applicable rules
07
Zonal benefits do not arise automatically
OPAZ claims tax exemptions up to 30 years, but the specific period, exceptions, application and ongoing conditions depend on the zone and act. For VAT Duqm, Salalah, Sohar and Al Mazunah are classified as Special Zones; The zero rate applies to qualifying supplies only if the conditions of the implementing rules are met.
08
Tax function calendar
The company must build accounting, documents and deadline control from the first day. The deadlines for declarations depend on the tax and reporting period; The individual calendar is confirmed in the Tax Authority portal.
- Income tax
- Registration, base calculation, declaration and payment
- VAT
- Registration, tax invoices, returns, payment and reconciliation
- WHT
- Verification of each non-resident payment and monthly deadline
- Records
- Contracts, invoices, customs, bank and settlements for the storage period
- Changes
- Types of activity, address, ownership and termination of registration
09
CFO checklist
- 01
Determine taxpayer, permanent establishment and tax status of each company.
- 02
Set up chart of accounts and tax adjustments.
- 03
Separate 5%, 0%, exempt and out-of-scope VAT transactions.
- 04
Embed WHT-review before paying to a non-resident.
- 05
Collect a calendar of declarations, payments and renewals.