Corporate Income Tax in Oman: What Businesses Must Know in 2025

Corporate income tax in oman

As Oman continues to evolve as a thriving business hub, understanding corporate taxation is crucial for entrepreneurs and investors. Whether you’re launching a new venture or expanding an existing business, staying informed about corporate income tax in Oman will help you optimize costs and remain compliant.

For businesses seeking expert tax consultation, Al Mawaleh Oman stands as a leading firm offering professional tax advisory services. With extensive experience in corporate tax filing, VAT compliance, and strategic tax planning, Al Mawaleh helps businesses navigate Oman’s evolving tax landscape. Known for its client-focused approach, the firm provides tailored tax solutions for startups, SMEs, and multinational corporations operating in Oman.

Corporate Income Tax in Oman: An Overview

Corporate income tax in Oman applies to businesses generating income within the country. Unlike some jurisdictions that tax global earnings, Oman follows a territorial taxation system, meaning only locally sourced income is subject to tax. This makes Oman an attractive destination for foreign investors looking to establish operations in the Middle East.

Current Corporate Tax Rates in Oman (2025)

As of 2025, Oman has structured its corporate tax rates to accommodate different business types:

  • 0% Tax Rate – Applicable to Omani-owned sole proprietorships and small businesses with gross income up to OMR 30,000.
  • 15% Standard Tax Rate – Applies to most companies, including LLCs, foreign branches, and joint-stock companies.
  • 55% Petroleum Tax Rate – Exclusive to oil and gas companies operating in Oman.

Oman does not impose personal income tax, making it a favorable destination for expatriates and foreign investors.

Who Needs to File Corporate Tax in Oman?

Businesses required to file corporate tax returns include:

  • Limited Liability Companies (LLCs)
  • Joint-stock companies
  • Foreign companies with a permanent establishment in Oman
  • Branches of international corporations
  • Partnerships earning taxable income above the exempt threshold

Filing Deadlines & Compliance Requirements

To avoid penalties, businesses must adhere to Oman’s tax filing deadlines:

  1. Provisional Tax Return – Must be submitted within three months of the end of the accounting year.
  2. Final Tax Return – Due within six months after the fiscal year ends.
  3. Audited Financial Statements – Required for larger firms to ensure transparency and compliance.

Late filing or non-compliance can result in financial penalties and legal action by the Oman Tax Authority.

Tax Exemptions & Incentives for Businesses

Oman offers tax exemptions and incentives to encourage economic diversification. Businesses operating in the following sectors may qualify for tax relief:

  • Tourism & Hospitality
  • Industrial & Manufacturing
  • Agriculture & Fisheries
  • Approved Free Zone Businesses (Salalah, Sohar, Duqm)

Companies should consult tax advisory in Oman to determine eligibility for exemptions and optimize their tax strategy.

VAT & Other Tax Considerations

While Oman does not impose corporate tax on global income, businesses must comply with Value Added Tax (VAT) regulations. The VAT rate in Oman remains at 10%, applicable to taxable goods and services.

Additionally, businesses should be aware of withholding tax on certain payments made to non-residents, including:

  • Royalties – 10%
  • Interest Payments – 10%
  • Management Fees – 10%

Tax Consultation & Advisory Services in Oman

Navigating Oman’s tax system can be complex, especially for foreign investors. Seeking tax consultation ensures businesses remain compliant while optimizing tax efficiency. Al Mawaleh Oman provides expert tax advisory services, covering:

  • Corporate tax registration & filing
  • VAT compliance & reporting
  • Payroll tax management
  • Strategic tax planning for businesses

Final Thoughts

Understanding corporate tax in Oman is essential for businesses looking to operate successfully in 2025. With structured tax rates, exemptions, and compliance requirements, companies must stay informed to avoid penalties and maximize financial efficiency.

Need expert guidance on income tax in Oman? Al Mawaleh Oman provides professional tax advisory services to help businesses navigate the evolving tax landscape.

📞 Contact Al Mawaleh today at +968 7733 8545
🌐 Visit: https://mawaleh.com

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