Being situated in the border of the UAE, Saudi Arabia, and Yemen, the Sultanate of Oman has been a favourite destination for international investors to invest in new startups, and expand their established business as well. Being surrounded by the other Middle-East countries, it becomes an open gateway to capture the other nations which enable the entrepreneurs and business persons to expand their business. Now, once a business entity gets established, it becomes mandatory to follow the taxation policies as stated by the Omani government. This article will take you through the taxation services available in Oman. Let’s proceed…

Oman Income Tax

The different types of taxes in Oman are:

1. Withholding Tax

Withholding tax in Oman stands at a rate of 10% that is to be paid to the government by the taxpayer of the income which involves dividends, interest, royalties, and professional fees, which is to be submitted to the Secretarial General, within the duration of 14 days.

2. Customs Duty

This rate gets implemented on the import/export goods to raise the state’s revenue. It is charged on the value of goods depending upon various parameters like weight, dimension etc. The standard custom duty rate in Oman stands at a rate of 5%.  Import and export of certain items like alcohol, tobacco, etc. need to bear a rate of 100%.

3. Corporate Tax

The standard corporate tax in Oman stands at 15%. However, the fee is charged on the business entities based on their revenue generation.

Oman to Introduce VAT by 2019

By the beginning of 2017, it was announced that all the GCC countries would adopt VAT taxation to leverage business activities. The UAE, Saudi Arabia has implemented the same, and a positive growth has been seen. The Sultanate of Oman has analysed their steps and came up with a decision to achieve the same by 2019.

Oman would be introducing VAT, at the rate of 5%, from 2019. The projection of the implementation of 5% VAT would raise 1.7% of the nation’s GDP, around $1.3bn, for the government. Below mentioned are the tax rates applicable in Oman. Do keep an eye.

Tax Rates in Oman

The standard corporate tax-rate for business entities is fixed a rate of 15%. A percentage of 3% tax applies to the Omani proprietorships with the below-set requirements:

• Registered capital shouldn’t exceed OMR50,000 at the beginning
• Gross income shouldn’t exceed OMR 100,000
• Average number of employees during the tax shouldn’t exceed 15

Oman Tax Treaties

Tax-treaties are agreements that take place between two nations to avoid double-taxation from both the countries during the import-export procedure. Till now, Oman has signed more than 30+ tax treaties with multi-nations that have become a plus point for entrepreneurs and business persons to expand it to the countries at a faster pace.

Thus, we can deduce the entire article with a fact that it becomes essential for a business entity to abide by the Oman tax law. If you are planning to set up your business in Oman, do remember that after the incorporation process, taking the tax procedures in hand becomes utmost important. Dealing with such process turns out to be easy if one is well-versed with the legal requirements. So, it is proposed to have a word with a tax consultant, who can help you in dealing with the taxation process. Below mentioned are the essential taxation services that serve as a must for a business entity.

Our Taxation Services

Xcellence tax experts take care of the following taxation proceedings:

• Tax Filing
• Tax Clearance Certificates
• Tax Compliance Services
• Tax Representations
• Tax Planning
• Tax Consultancy

Xcellence, one of the leading business consultants in Dubai, is whom you can count on. Our business experts are well-versed with the Omani framework and will ease the process of availing the IP services for your business. To know more about the process to initiate, contact us today. We’d be happy to assist you.