Tax Service in Oman
VAT & Tax Consultant in Oman
Sultanate of Oman having its borders with the GCC countries of Yemen, Saudi Arabia and the UAE has always been a hotspot for international investors and those planning to initiate startups here or to expand their already established companies. Surrounded by the Middle East countries, Oman is perceived as an open gateway for capturing other nations, thus allowing business persons and entrepreneurs to expand their business horizon. On establishment of the business entity, the next step will be to follow mandatorily the Omani government set taxation policies. This article provides knowledge on the taxation services that are available in Oman.
Income Tax in Oman
In Oman, there are different tax structures to be followed like
Withholding Tax: In Oman, the current withholding tax is at 10% flat rate to be paid by the taxpayer to the government on income received involving interests, dividends, professional fees and royalties. The same needs to be submitted within 14 days time frame to Secretarial General.
Customs Duty: For raising revenue of the state, this rate has been implemented upon export/import of goods. It is charged upon goods value based upon different parameters like dimension, weight, etc. Oman follows a standard rate of custom duty of 5%. Export and import of specific items like tobacco, alcohol, etc. are of 100% rate.
Corporate Tax: 15% is the standard followed corporate tax in the Sultanate of Oman. Business entities are also levied upon a fee based on revenue generation.
VAT Registration Service in Oman
At OCR we bring to you VAT registration service for all kind of business in Oman. It had been announced at the start of 2017 that VAT taxation is to be adopted by all GCC countries to leverage up business activities. This has been already implemented by Saudi Arabia and the UAE, thereby witnessing positive growth. Oman, after analyzing the steps taken by these two GCC members has decided to achieve similar results by 2019.
VAT is introduced in Oman from 2019 with 5% rate. 5% VAT implementation projection is expected to raise about 1.7% of the country’s GDP, which will benefit the government by about $1.3bn. Given below are applicable tax rates in Oman. Check out the same.
Oman Tax Rates
Business entities are to face a standard corporate tax rate of 15%. Omani proprietorships are also applied with 3% tax with below given requirements:
- During the tax, average employee numbers not to exceed 15
- Gross income not to exceed OMR 100,000
- Registered capital not to exceed OMR 50,000 during the initial stage
Oman Tax Treaties
Two nations undertaking agreements to avoid unnecessary double taxation, from both the countries while carrying out export-import procedure, is termed as Tax treaties. Oman, till now has managed to sign 30+ tax treaties with different nations across the globe. It is definitely a positive point for all business persons and entrepreneurs to expand to the tax treaty signed countries quickly.
Hence, this article when gone through properly can help the business entity to follow and abide by the prevailing Oman tax laws. In case, the desire is to establish your business in the Sultanate of Oman, it is necessary to understand that after carrying out the incorporation procedure, it is crucial to take into consideration the necessary tax procedures. Being well versed with the different legal requirements can help to deal with the procedure quickly, effectively and efficiently. Discussing with the tax consultant can help you to better deal with taxation process that is currently being practiced in Oman. Given below are some crucial taxation services, which are a must have for any business entity.
Our provided Taxation Services
We at OCR are tax experts and can provide expertise on the given below taxation proceedings
- Tax Consultancy
- Tax Planning
- Tax Representations
- Tax Compliance Services
- Tax Clearance Certificates
- Tax Filing
OCR is among the top business consultants based in Dubai that you can always rely upon. Our experts have in-depth knowledge of the Omani framework and can help to ease up the procedures involving availing IP services necessary for your business.