Oman's Income Tax Law imposes tax on the taxable income of any Omani establishment, company or permanent establishment at a rate of 15%, with a special, higher rate of 55% applying to persons subject to tax in the field of oil prospecting in respect of income earned from selling oil.
The General Income Tax Rate
The Income Tax Law provides that the tax is calculated by applying a rate of 15% to the taxable income of any Omani establishment, company or permanent establishment for any tax year, regardless of the size of its capital or its activity, unless special provisions such as the small establishments regime apply to it.
The Special Rate for the Oil Prospecting Sector
The law singles out the oil prospecting sector with an independent and relatively high tax rate, providing that the tax rate on persons subject to tax in the field of oil prospecting is 55% of the taxable income in respect of any income earned from selling oil, a rate that differs substantially from the general rate applied to other economic activities.
The Deadline for Filing the Income Return
A taxable person must submit the income return for any tax year before the lapse of 4 months starting from the end of that year, or from the end of the accounting period covered by the return, whichever is earlier.
Attaching Audited Accounts
A taxable person must attach to the income return its accounts for the accounting period ending in that tax year, and these accounts must be audited by an auditor legally licensed to practice the accounting and auditing profession in Oman.
Who Is Subject to This General Rate
The general rate of 15% applies to every Omani establishment or company, as well as to the permanent establishment of any foreign person carrying on an activity in the Sultanate, regardless of the nationality of the owners or the source of the capital, unless the establishment meets the special conditions that allow it to fall under a different tax regime, such as the small establishments regime, which applies a lower rate to those who meet its conditions. The law provides for this rate as a single rate applied to the taxable income of any Omani establishment, company, or permanent establishment, without distinguishing between them based on the size of their activity, as long as they are subject to the general chapter of the law, which makes knowing this rate a necessary starting point for any establishment before calculating its annual tax obligations or planning its cash flows.
Legal References
- Income Tax Law (as amended) — Article 112
- Income Tax Law (as amended) — Article 114
- Income Tax Law (as amended) — Articles 140 and 141
For questions about your specific situation, you can ask the Oman Tax & Legislation Helper on Helpers, or consult a licensed chartered accountant.