Taxes in Oman
Oman taxes company profits at 15%, with a 3% rate for small enterprises that meet the conditions and 55% for petroleum income. VAT at 5% has applied since 16 April 2021. Withholding tax at 10% applies to royalties, management fees and certain service fees paid to non-residents, while withholding on dividends and interest, suspended since 2019, was permanently withdrawn by Royal Directive in January 2023. A 15% Supplementary Tax implements Pillar Two for financial years from 1 January 2025, and a personal income tax of 5% on income above OMR 42,000 takes effect on 1 January 2028.
Key facts
| Corporate income tax | 15% (3% for qualifying small enterprises; 55% for petroleum) |
|---|---|
| VAT | 5% since 16 April 2021; mandatory registration above OMR 38,500 |
| Withholding tax | 10% on royalties, management fees and specified services; dividends and interest permanently withdrawn (Royal Directive, January 2023) |
| Supplementary Tax (Pillar Two) | 15% for MNE groups from 1 January 2025 (Royal Decree 70/2024) |
| Personal income tax | 5% above OMR 42,000, from 1 January 2028 (Royal Decree 56/2025) |
| Authority | Oman Tax Authority (OTA) |
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Filing
The corporate income tax return, with audited accounts where required, is due within four months of the financial year end and tax is paid with it. VAT returns are quarterly, due within thirty days of the quarter end.
The first GCC personal income tax
Oman is the first GCC state to legislate a personal income tax. Royal Decree 56/2025 imposes 5% on the income of individuals above OMR 42,000 a year, with deductions for education, healthcare, housing and Zakat, from 1 January 2028. Executive regulations will settle the detail before then.
Frequently asked questions
- What is the corporate tax rate in Oman?
- 15%. Qualifying small enterprises pay 3% and petroleum income is taxed at 55%.
- Does Oman have VAT?
- Yes, at 5% since 16 April 2021.
- Does Oman have personal income tax?
- Not yet. A 5% tax on individual income above OMR 42,000 applies from 1 January 2028.
Primary sources
Related guides
Disclaimer: This page provides general tax information based on publicly available primary sources, reviewed on the date shown. Rules are conditional and change; the page may not reflect a change made after that date, and it is not a substitute for advice from a qualified tax professional on your specific situation.