Background
Oman, which is also called the Sultanate of Oman, is an Arab country in Western Asia. It is on the southeast coast of the Arabian Peninsula. At the mouth of the Persian Gulf, the country is in a strategically important location. It has land borders with the United Arab Emirates to the northwest, Saudi Arabia to the west, and Yemen to the southwest. It also has sea borders with Iran and Pakistan. The Arabian Sea to the southeast and the Gulf of Oman to the northeast make up the coast.
Oman’s economy is pretty diverse, but it still depends on oil exports. Tourism is the sector in Oman that is growing the most quickly. Agriculture and industry, which bring in small amounts of money, make up less than 1% of the country’s exports.
Over 4 million people live in Oman, and about 45% of them are from outside the country.
Employers
The Big 4 accounting firms all have offices in Oman. Their main office is in Muscat, the capital. There aren’t many tax jobs in-house in Oman, so Deloitte, KPMG, EY, and PwC are the main companies that hire tax professionals.
Working in Oman
You will need a residency permit to work in Oman. When you apply for residency, you must already have a job offer that you can’t back out of. Your new employer will send you an invitation to stay in the country, and they will start the immigration process. A work visa holder’s spouse and any children under 21 can apply for a family visa, which lets them live in Oman but not work.
A typical work week goes from Sunday to Thursday and lasts between 40 and 48 hours. Friday and Saturday are the weekends. This is mostly because Friday is a holy day for Muslims and is when Jumu’ah prayers are held. Saudi Arabia and Qatar, two of Oman’s neighbors, also mostly follow its work week.
Taxation
Oman does not have a law on personal income tax (PIT) yet.
People who are born and raised in Oman have to pay a 17.5% social security contribution. The employee puts in 7% of their salary, and the employer puts in the other 10.5%. But this doesn’t apply to people who live abroad.
At the moment, VAT is 5%.
You will be Interested on : Updated Tax guide to doing business in Oman
Schooling
If you are moving to Muscat with children, the most expensive part of your move will be the fees for an international school. For example, teenagers would have to pay about £15,000 per year. Because of this, you should talk with your employer about making school fees part of your overall package. Also, you should sign up your child as soon as possible to make sure there is a spot in the school you want. The British School Muscat, the American British Academy, the Al Batinah International School, and the British School Muscat are all well-known international schools.
Transport
Sharing a taxi is the most common way for people to get around in Oman. If you booked a “private” or “engaged” taxi, you would have to pay a lot more. Taxis in Oman don’t have fixed rates based on distance or time. Instead, the price is agreed upon before the ride. This can make things hard for new expats and make it more likely that you’ll be charged too much. You should ask people in the area what they think is a fair price. Between the bigger cities, you can also take intercity bus lines. These are nice and cool, and they are comfortable. Many tax professionals decide to drive to and from work in their own cars.
Accommodation
Most people live in Muscat and Salalah, which are the two largest cities. Expats rarely buy property in Oman unless they plan to stay there for a long time. The most common choice is to rent, and contracts are usually paid in full and last for 3 months or a year. Sites like Better Homes and Gardens and Savills can help you find a place to rent. A 1-bedroom apartment close to Muscat would start at OMR 550 per month, which is about £1,000 or $1,500 per month.
This article, which specializes in tax recruitment and publishes news about living and working in GCC countries.
Keep reading : Oman Tax Services