Oman Tax Structure in 2025 – Complete Guide for Businesses and Individuals

If you’re doing business or planning to relocate to Oman, it’s crucial to understand the Oman tax structure to stay compliant and make smart financial decisions. Unlike many countries, Oman offers a tax-friendly environment with no personal income tax, but corporate entities and foreign investors must still navigate specific tax rules.

🧾 Overview of the Tax Structure in Oman

Oman’s tax system is simple, transparent, and investment-friendly. It includes:

✅ Corporate Income Tax
✅ Value Added Tax (VAT)
✅ Customs Duties
✅ Withholding Tax (on select payments)
❌ No Personal Income Tax

This makes Oman particularly attractive for both investors and skilled professionals looking for tax-efficient opportunities in the Gulf region.

💼 Corporate Income Tax in Oman

Companies operating in Oman are subject to corporate income tax, structured as follows:

0% tax for small Omani-owned businesses earning below OMR 30,000
15% flat rate for most companies, including LLCs and foreign branches
55% tax applies only to petroleum and natural gas companies

👉 Learn more about Corporate Income Tax in Oman

💸 VAT in Oman (5%)

Oman introduced Value Added Tax (VAT) in April 2021 at a standard rate of 5%, applied to most goods and services. Businesses with a turnover above OMR 38,500 must register for VAT and file returns quarterly.

Common sectors affected include:

Retail and eCommerce
Construction and real estate
Hospitality
Professional services

👉 Need help with VAT registration or filing? Contact our tax consultants in Oman

🚢 Customs Duties

Imported goods into Oman are typically subject to 5% customs duty, except for essential items like food, medicine, and goods from GCC countries. Excise duties apply to specific products like:

Tobacco (100%)
Energy drinks (100%)
Sugary drinks (50%)

📤 Withholding Tax in Oman

Oman imposes withholding tax (WHT) on payments made to foreign entities for:

Royalties
Management fees
Interest
Dividends

The standard rate is 10%, but it may vary based on double tax treaties with other countries.

👨‍👩‍👧‍👦 Personal Income Tax in Oman

There is currently no personal income tax in Oman. Residents and expatriates do not pay tax on salaries, capital gains, or investments, making it one of the most expat-friendly destinations in the GCC.

However, discussions about personal income tax have surfaced in Oman’s Vision 2040 plans, but no implementation date has been confirmed.

📊 Summary Table: Oman Tax Structure at a Glance

Tax Type	Rate	Applies To
Corporate Income Tax	0% / 15% / 55%	Businesses (based on category)
VAT	5%	Most goods and services
Customs Duties	5% avg	Imported goods (exceptions apply)
Withholding Tax	10%	Foreign service providers
Personal Income Tax	❌ None	Not applicable (as of 2025)

🚀 Final Thoughts: Navigating the Oman Tax Landscape

Oman’s tax system is one of the most business-friendly in the Middle East. With no income tax and low VAT rates, it’s a cost-efficient jurisdiction for entrepreneurs, foreign investors, and large enterprises alike.

To ensure full compliance and avoid penalties, it’s always best to work with experienced local advisors.

🔍 Need assistance understanding how Oman’s tax structure applies to your business?
📞 Speak to a certified tax advisor in Oman