Corporate tax services in Oman

Corporate income tax in Oman at a glance

Withholding tax

A 10% withholding tax applies to certain payments made to non-residents that have no permanent establishment in Oman, such as royalties, consideration for research and development, use of computer software, and management fees. The paying Omani company must withhold the tax and pay it to the Tax Authority by the due date. Treaty relief may be available under Oman's network of double tax treaties.

Our corporate tax services

• Tax registration and Tax Authority portal setup
• Annual return preparation, supported by your audited accounts
• Withholding tax computation, filing and payments
• Tax exemption applications, for example for free zone and incentive regimes
• Responding to Tax Authority queries and assessments
• Tax-efficient structuring advice for new investments, alongside your tax adviser

Penalties to avoid

Late registration, late filing, late payment and incorrect returns can all lead to penalties and additional tax. Unpaid tax also blocks tax clearance certificates, which you need for some government transactions and for liquidation.

Who needs this service

Every company and permanent establishment in Oman must register with the Oman Tax Authority and file an annual corporate income tax return — even in a loss year. Our service suits new companies setting up their tax affairs, foreign groups with an Omani subsidiary or branch, and companies paying cross-border fees that may attract withholding tax.

How the annual cycle works

Planning opportunities

• Small company rate: qualifying small companies may pay 3% instead of 15%; we check eligibility each year.
• Free zone and incentive regimes: tax holidays depend on the zone and approval terms.
• Deductible expenses: properly documented costs reduce taxable profit.
• Group payments: intragroup fees, royalties and interest need to be structured and documented, including any withholding tax.

Documents we need

• Tax card and registration details
• Trial balance, ledgers and financial statements
• Contracts for cross-border payments
• Prior-year returns and assessments

Why MakeMyCompany

Our accounting and tax teams work together, so your return matches your books and your audited statements. Read our Oman tax system guide, how to get a tax card and tax residency certificates.

Frequently asked questions

What is the corporate tax rate in Oman?

15% of taxable profit. Qualifying small companies pay 3%.

When is the corporate tax return due in Oman?

Within four months of the end of the tax year, which is 30 April for companies with a 31 December year-end.

Do branches of foreign companies pay tax in Oman?

Yes. Branches and other permanent establishments pay corporate income tax on the profits attributable to their Oman operations.

Is there personal income tax in Oman?

Not currently. A personal income tax at 5% on annual income above OMR 42,000 is scheduled from 2028. See our Oman tax system guide.

Do loss-making companies need to file a tax return?

Yes. Every taxable company must file its annual return, even when there is no tax to pay.

Is there withholding tax on dividends paid abroad?

The rules on withholding tax for dividends paid to foreign shareholders have changed in recent years, so we confirm the current position for your structure before profits are distributed.

Official sources

Requirements and fees change, so confirm current details with the authority concerned. This page is general guidance, not legal advice.

• Oman Tax Authority – corporate tax, VAT and tax card registration.