Tax Rates

Income Tax:

• Institutions and commercial companies:
  • 15% of net taxable income
  • Small enterprises: 3% according to specific conditions (such as revenues and number of employees)
• Oil and gas exploration companies:
  • 55% income tax, based on concession contracts with the government
  • May also be subject to other financial obligations such as royalties and the government’s share of production
• Withholding Tax:
  • 10% is deducted from payments made to non-residents for services, interest, or royalties
  • Paid directly to the Tax Authority by the paying entity in Oman

VAT:

• Basic rate: 5% applied on most goods and services
• Zero rate (0%) for certain goods and services, such as:
  • Exports
  • Essential goods (513 items)
  • International transport
• Exemptions for some activities, including:
  • Financial services
  • Rental of residential properties

Excise Tax:

Excise tax is imposed on specific goods that are harmful to health or the environment, including tobacco, soft drinks, energy drinks, and electronic cigarettes and their accessories. It is applied once, either upon import or local production.

• 100% on tobacco products, energy drinks, electronic smoking devices, and vaping liquids
• 50% on soft drinks