Oman Corporate Income Tax

Corporate income tax rates and base

Corporate income tax is Oman's principal direct tax, governed by the Income Tax Law. The standard rate is 15%, with a reduced 3% rate for qualifying Omani SMEs and a special 55% regime for petroleum income.

• Standard corporate income tax rate — 15% on taxable income % (Income Tax Law (Royal Decree No. 28/2009))
• Reduced rate for qualifying SMEs — 3% for Omani proprietorships/LLCs meeting SME conditions (registered with the authority for SME development; capital and turnover limits apply) % ((approx — confirm capital/turnover/headcount thresholds)) (Income Tax Law (Royal Decree No. 28/2009))
• Petroleum income tax rate — 55% on income from the sale of petroleum (under specific EPSAs) % (Income Tax Law (Royal Decree No. 28/2009))
• Tax base — Net taxable profit per the financial statements, adjusted for tax purposes; resident companies taxed on worldwide income (Income Tax Law (Royal Decree No. 28/2009))
• Standard withholding tax rate — 10% on certain Oman-source payments to non-residents without a permanent establishment % (Income Tax Law (Royal Decree No. 28/2009))
• Withholding tax on royalties — 10% on royalties paid to non-residents (no PE in Oman) % (Income Tax Law (Royal Decree No. 28/2009))
• Withholding tax on management fees / services — 10% on management fees and fees for services paid to non-residents (no PE in Oman) % (Income Tax Law (Royal Decree No. 28/2009))
• Withholding tax on dividends and interest — 10% statutory rate, but suspended for non-residents (suspension extended via Royal Directive; remains suspended for 2025) ((confirm current suspension status)) (Income Tax Law (Royal Decree No. 28/2009))
• Withholding tax remittance deadline — Within 14 days from the end of the month in which the payment was made (Income Tax Law (Royal Decree No. 28/2009))
• Annual return and payment deadline — Annual income tax return and payment due within 4 months of the accounting year-end ((approx — confirm; some guides cite up to 6 months — verify against current Executive Regulations)) (Income Tax Law (Royal Decree No. 28/2009))
• Provisional return — A provisional return is historically required early in the year (the formal two-stage filing has been streamlined under recent practice — confirm current requirement) ((approx — confirm)) (Income Tax Law (Royal Decree No. 28/2009))