Main taxes and fees in Oman
Oman, known for its political stability and strategic location, offers one of the most attractive tax systems in the Middle East. Low rates, transparent regulations, and the absence of key taxes for individuals make the country ideal for business and investment. Let's take a look at the Omani tax system in 2025.
VAT
The introduction of VAT in 2021 is part of the Vision 2040 strategy aimed at developing Oman's non-energy sectors of the economy.
Basic information
Who pays?
Companies registered in Oman Non-resident companies whose supplies are subject to VAT in Oman
Tax base
The entire amount of payment for the supply that is subject to VAT, including expenses and fees collected from the purchaser during the supply (except for subsidies, grants, etc. specifically stipulated in the by-laws)
Tax period
Quarter
Possible bets
Bid
Depends on the taxable transaction
5%
The standard rate at which most goods and services, including e-commerce, are taxed
0%
- export operations
- supplies of certain types of food products
- supplies of gas and oil, petroleum products and natural gas
- international transportation
- supplies of certain medical drugs or equipment
- supply of investment metals (gold, silver, platinum)
Exceptions
Exempt from VAT
- educational services
- medical services and goods
- sale of certain types of land and real estate
- passenger transport services
Registration types
Thresholds for registration as a VAT payer
Mandatory registration
The company's taxable turnover reached 38,500 OMR (~100,000 USD)
Voluntary registration
The company's taxable turnover reached 19,250 OMR (~50,000 USD)
The obligation to register for a non-resident arises from the moment of the first transaction subject to VAT in Oman.
"The introduction of VAT increases the administrative burden on companies, especially small and medium-sized businesses. However, large companies can reimburse VAT paid to suppliers, which reduces the overall tax burden." Ivan Egorov, юрист
Income Tax (CIT)
Unlike many countries where the corporate tax burden is universal, Oman applies a differentiated approach, taking into account the industry, the company's residency status and the location of the business.
Who is it relevant for?
Who pays?
- Foreign-owned companies registered in Oman
- Non-resident companies deriving income from sources in Oman
- Does not apply to local companies owned by Omani citizens or wholly Omani legal entities.
Tax base
Profit (the amount of income from operating activities, dividends, interest on loans, royalties, etc.) after deducting expenses
Tax period
Calendar year
Possible bets
Bid
Depends on the business sector:
- 15% - general rate
- 55% - for oil and gas companies
Since 2025, Oman has had a global minimum tax rate of 15% on multinational corporations (Domestic Minimum Top-up Tax, DMTT) with revenues of more than €750 million for two of the last four years.
"The global minimum tax is a new international standard developed by the OECD as part of the BEPS 2.0 (Base Erosion and Profit Shifting) project. The main goal of the initiative is to set a lower threshold for the corporate tax rate for large transnational companies to prevent them from using offshore jurisdictions with low or zero tax rates." Sergey Kovalkov, Head of International инкорпораций
Possible benefits
Benefits for small and medium businesses on income tax
Oman has a system of incentives for small and medium-sized businesses (in the form of partnerships or LLCs), which reduces the corporate tax rate to 3%. To do this, the following conditions must be met simultaneously:
- the authorized capital must be less than 50,000 OMR (~ 130,000 USD),
- the company's annual income does not exceed 100,000 OMR (~ 260,000 USD),
- the average number of employees in the company per year does not exceed 15,
- The company does not engage in the following activities:
- air or sea transport
- extraction of natural resources
- banking, insurance and other financial services
- public utilities
Withholding tax (WHT)
Withholding tax applies to payments to non-residents, but its incidence is limited in Oman.
About the rate
Rate conditions
Ставка
10%
When is it paid?
- Royalty for the use of intellectual property.
- Payments for technical, consulting or management services to non-residents.
Exempt from WHT
- Dividends and interest on loans.
- Payments to companies from countries with which Oman has double taxation agreements (e.g. India, China, Türkiye).
We recommend checking tax treaties between Oman and the beneficiary's country to reduce or eliminate WHT.
Oman does not have a DTA with the US, which means that when dividends/royalties/interest on a loan are paid from the US to an Omani company, there will be a 30% withholding in the US.
At the same time, Apple and Google services can process payments from different jurisdictions depending on which service is in question, what your account history is, and the volume of sales to users in different countries.
For example:
- Google Ads payments are typically made from the US and may be subject to a 30% withholding tax.
- Payments from Google Play may be made from Google entities in various jurisdictions (for example, the US or Ireland):
- If payments to your account are made from the United States, they are subject to withholding tax at a rate of 30%.
- If payments to your account originate from Ireland, Google is not required to withhold tax on those payments.
Valve will withhold a 30% withholding tax on all revenue from the game's US audience when paying out money from Steam.
PERSONAL INCOME TAX
There is no personal income tax in Oman. This means that salaries, dividends, interest on deposits and other types of income of citizens and residents of the kingdom are not subject to income tax. However, companies in Oman are required to pay insurance contributions for employees (only for Omani citizens working for the company).
Currently, active work is underway to introduce personal income tax. According to preliminary data, it may be introduced from 2026, the rate may be from 5 to 9%.
It is assumed that the tax will apply to individuals only when certain thresholds are crossed:
- for foreign citizens – reaching an income of 30,000 OMR per year (~ 78,000 USD) or USD 100,000 income from sources in Oman;
- for citizens of Oman - upon reaching an income of USD 1,000,000 per year
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