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Taxation Services in Oman

Managing taxes in Oman requires a thorough understanding of the evolving laws and procedures of the Oman Tax Authority (OTA). At MakeMyCompany, we simplify every step — from corporate tax filings to VAT registration and excise tax compliance — helping you stay fully aligned with Oman’s legal and financial framework. Our experienced tax consultants in Oman ensure that your business complies with all obligations under the Oman Tax Law, while optimizing your structure for efficiency and growth.
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Taxation Services in oman

Corporate Income Tax in Oman — Rate, Scope & Filing Timeline

Oman imposes a standard corporate income tax (CIT) rate of 15% on company profits, with SME relief and exemptions available for qualifying entities. Businesses must file returns and pay taxes on time to avoid penalties under OTA regulations.

Standard 15% CIT & SME Relief (Who Qualifies)

  • Most LLCs, foreign branches, and establishments are taxed at a rate of 15%.
  • SMEs meeting specific conditions may enjoy a 3% reduced tax rate, as per the latest OTA guidelines.
  • Certain sectors, such as mining, oil, and gas, have special tax provisions defined by law.
  • Entities registered under double tax treaties benefit from reduced withholding obligations.

Return Deadlines, Extensions & Penalties (OTA Rules)

Corporate tax returns must generally be filed within seven months after the end of the accounting period.

If needed, extensions can be requested through the OTA e-portal.

Penalties for delays, under-declarations, or missing filings range from OMR 100 to OMR 2,000, depending on severity.

At MakeMyCompany, we manage your Oman tax return filing deadlines, coordinate with auditors, and handle communication with the Oman Tax Authority for seamless compliance.

VAT in Oman — Registration, Returns & Compliance

Oman introduced Value Added Tax (VAT) at 5% on 16 April 2021, in line with GCC Unified VAT principles. Every taxable person is required to register, collect, and remit VAT on eligible transactions.

Who Must Register (Thresholds, Waves History)

  • Compulsory registration threshold: OMR 38,500 (annual turnover).
  • Voluntary registration threshold: OMR 19,250.
  • VAT registration was implemented in phased waves to allow smooth adoption.
  • Non-residents making taxable supplies in Oman are required to register immediately.

Return Cycle, Invoices, Record-Keeping & Audits (OTA)

  • VAT returns are usually filed quarterly, though large businesses may have monthly cycles.
  • Businesses must maintain VAT-compliant invoices, ledgers, and purchase records for at least 10 years.
  • The OTA regularly conducts VAT audits and cross-checks filings against reported sales.
  • Non-compliance may result in financial penalties and the potential suspension of the VAT certificate.

Our experts handle VAT registration in Oman, ensure timely filings, and submit OTA portal updates, keeping your VAT compliance clean and worry-free.

Excise Tax in Oman — Categories, Rates & Controls

Excise tax in Oman is applied to products considered harmful to health or the environment. The Oman Tax Authority (OTA) manages its collection, and businesses dealing in excisable goods are required to register accordingly.

Current Excise Goods & % Rates (Tobacco, Energy Drinks, etc.)

Excise applies to:

  • Tobacco products – 100%
  • Energy drinks – 100%
  • Carbonated beverages – 50%
  • Sweetened drinks – 50%
  • Vaping products – 100%

If your company imports or distributes excisable items, MakeMyCompany assists with:

  • Excise registration and return filing through OTA systems.
  • Product classification and tariff code mapping.
  • Calculation and declaration of excise liabilities.

Personal Income Tax Update — What Changes in 2028 (and What Doesn’t Today)

While Oman currently does not tax individual income, a Personal Income Tax Law has been introduced through Royal Decree 56/2025, published in the Official Gazette No. 1602.

Royal Decree 56/2025: 5% Above OMR 42,000 (Effective January 1, 2028)

  • The law introduces a 5% personal income tax for individuals earning above OMR 42,000 annually.
  • Implementation begins on January 1, 2028, allowing sufficient preparation time for businesses and residents.

Impact on Expatriates & Employers (Planning Ahead)

  • Employers will be required to withhold tax at source once the law takes effect.
  • Expatriates and high-income individuals should plan early with the support of professional advisors.
  • MakeMyCompany’s tax consultants can assess potential implications and help structure remuneration to stay compliant.

Our Process From Assessment to OTA Filings (Step-by-Step)

At MakeMyCompany, we manage the entire tax cycle, from planning to compliance. Our structured process ensures transparency, accuracy, and peace of mind.

Discovery & Document Checklist

We begin by understanding your operations, identifying applicable taxes, and preparing a document checklist:

  • Commercial registration (CR) and tax card
  • Financial statements and invoices
  • Bank statements, contracts, and expense ledgers

OTA Portal Setup & Registration

We register your entity on the OTA portal, obtain credentials, and configure your tax account for CIT, VAT, or Excise obligations.

Review, Filing, and Post-Filing Support

Our advisors review all financial data before submission, prepare accurate tax returns, and provide assistance during OTA audits or clarifications.

Post-filing, we monitor deadlines, manage renewals, and provide proactive tax planning for the next fiscal period.

Pricing & Packages — Transparent, Fixed-Fee Options

We offer flexible tax solutions tailored to your company’s size and needs.

VAT Registration & Monthly Returns

  • Full VAT registration support, from application to certificate issuance.
  • Ongoing filing, reconciliations, and compliance monitoring.

Year-End CIT Filing

  • Preparation of corporate income tax returns with auditor collaboration.
  • Submission and representation before OTA (if required).

Tax Advisory Retainers

  • On-call consulting for compliance, planning, and dispute resolution.
  • Dedicated tax advisor and real-time OTA updates throughout the year.

Our goal is simple — accurate compliance, zero penalties, and maximum efficiency for your Oman-based business.

Types of Tax Services in Oman

Understanding taxation in Oman can be complex due to the different categories regulated by the Oman Tax Authority (OTA). Each business activity may fall under one or more tax obligations. At MakeMyCompany, we offer a comprehensive suite of Oman tax services that encompass every aspect of compliance — from registration and filing to advisory support.

Our expertise ensures that your company meets all corporate tax, VAT, and excise requirements while staying aligned with the latest OTA regulations and deadlines.

Here are the main types of tax services we offer in Oman:

1. Corporate Income Tax (CIT) Services

    • Preparation and submission of annual corporate tax returns at the standard 15% CIT rate.
    • Assistance in obtaining your tax card and maintaining accurate financial records.
    • Tax planning and restructuring to help SMEs benefit from the 3% reduced rate where applicable.
    • Guidance on double tax treaty advantages for foreign investors and cross-border operations.

2. Value Added Tax (VAT) Services

    • VAT registration and certification under the 5% VAT system, effective since April 16, 2021.
    • Filing of periodic VAT returns, reconciliation of input/output VAT, and correction of prior period errors.
    • VAT advisory and audit support, ensuring full compliance with OTA standards.
    • Assistance with record-keeping, documentation, and accounting integration for VAT compliance.

3. Excise Tax Services

    • Registration and classification of excisable goods, including tobacco, carbonated drinks, and energy drinks.
    • Calculation of excise tax rates and submission of returns on the OTA portal.
    • Support in maintaining excise records and representing clients during OTA inspections or audits.

4. Personal Income Tax (PIT) Advisory (Effective 2028)

    • Strategic planning for the upcoming 5% personal income tax under Royal Decree 56/2025, applicable above OMR 42,000.
    • Employer-employee tax structuring and payroll planning to prepare for 2028 implementation.
    • Regular updates will be provided as the Ministry of Finance releases executive regulations.

5. Tax Consultancy and Advisory

    • Personalized guidance on tax efficiency, risk management, and audit readiness.
    • Continuous monitoring of OTA notifications and regulatory updates.
    • Representation during disputes or clarifications with the Oman Tax Authority.

Our goal is to provide proactive tax advisory services in Oman that help businesses minimize risks, remain compliant, and focus on sustainable growth. Whether you’re a new company or an established enterprise, our team ensures that every tax obligation — from registration to return filing — is handled with precision and care.

Why Choose MakeMyCompany for Taxation Services in Oman

Choosing MakeMyCompany means working with a team that thoroughly understands Oman’s taxation system. We combine local expertise with accurate, timely, and compliant tax solutions tailored to your business needs.

We assist with corporate tax, VAT registration, excise filings, and advisory services, ensuring full compliance with the Oman Tax Authority (OTA).

Here’s why businesses trust us:

  • Expert consultants with proven experience in Oman tax laws and OTA regulations.
  • Complete solutions covering registration, filing, and ongoing advisory.
  • Transparent pricing with no hidden fees or complex terms.
  • Local presence in Muscat and trusted by businesses across Oman.
  • Personalized support for SMEs, startups, and international investors.

With MakeMyCompany, you get more than compliance — you gain a reliable partner dedicated to keeping your business tax-ready and future-focused.

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Our dedicated team is committed to providing exceptional service and support for all your business needs. Whether you have questions, require guidance, or need immediate assistance, we are here for you.
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FAQs — Oman Tax & Compliance (Updated 2025)

The standard corporate tax rate in Oman is 15%, while qualifying small and medium enterprises (SMEs) may benefit from a reduced 3% rate. The rate applies to net taxable profits earned within Oman.

Yes. Foreign companies or branches operating in Oman are subject to corporate income tax on income generated within the country. However, Oman has several double taxation treaties, which help reduce tax on cross-border transactions.

Companies must file their annual corporate income tax return within seven months after the end of their accounting period. Late submissions or unpaid taxes can lead to penalties imposed by the Oman Tax Authority (OTA).

Oman applies a 5% Value Added Tax (VAT) on most goods and services. The VAT system officially began on 16 April 2021 under the supervision of the Oman Tax Authority.

Businesses with an annual turnover exceeding OMR 38,500 must register for VAT. Those earning above OMR 19,250 can register voluntarily to claim input VAT credits and improve compliance.

Essential goods and services such as basic food items, education, healthcare, and local transport are either zero-rated or exempt from VAT. Exported goods are also zero-rated under VAT rules.

Excise tax applies to products considered harmful to health or the environment, including tobacco (100%), energy drinks (100%), carbonated beverages (50%), and sweetened drinks (50%). Businesses dealing in these items must register and file returns with the OTA.

As of now, Oman does not levy personal income tax. However, a new Personal Income Tax Law (Royal Decree 56/2025) introduces a 5% rate for individuals earning above OMR 42,000, which will take effect on 1 January 2028.

To stay compliant, businesses should maintain accurate records, file returns on time, and update information on the OTA portal. Partnering with a professional tax consultant in Oman, such as MakeMyCompany, ensures your filings and documentation meet all regulatory standards.

Yes. Many free zones in Oman offer tax holidays, full foreign ownership, and customs exemptions. Companies operating within these zones can benefit from extended incentives depending on their industry and investment structure.

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