Middle East · Tax guide
Oman
Oman taxes company profits at 15%, with a 3% rate for qualifying small businesses, charges VAT at 5%, withholds tax on many payments abroad, and is introducing the Fawtara e-invoicing system from February 2027. A personal income tax on high earners follows in 2028. Taxes are administered by the Oman Tax Authority.
At a glance
- Corporate income tax
- 15%
- VAT
- 5%
- Withholding tax
- 10%
- Personal income tax
- 5%
- E-invoicing (Fawtara)
- February 2027
- Global minimum tax
- 15%
3% for qualifying small businesses
Registration above OMR 38,500 a year
On royalties, management fees, software and services paid abroad
From 2028, on income above OMR 42,000
First phase, for the largest businesses
Groups with revenue of €750 million or more
Corporate income tax
Companies, branches and permanent establishments in Oman pay income tax at 15% on taxable profits. Small businesses that meet all the conditions — capital up to OMR 50,000, gross income up to OMR 100,000, no more than 15 employees, and Omani ownership — can instead pay 3%.
Tax is paid through a provisional return during the year and settled with the annual return, filed within four months of the year-end.
VAT
VAT is charged at 5%, with zero-rating for exports, many basic foods, medicines and medical equipment, and exemptions for most financial services, education, healthcare, local passenger transport and residential property.
Registration is mandatory once annual supplies exceed OMR 38,500 and voluntary above OMR 19,250. Most businesses file quarterly returns.
E-invoicing (Fawtara)
Oman is introducing mandatory e-invoicing through the Fawtara system in phases. The first phase, for the largest businesses, starts in February 2027; the second phase, covering other VAT-registered businesses, starts in August 2027. The Tax Authority confirms who falls into each phase.
Withholding tax on payments abroad
Omani payers deduct 10% from royalties, management fees, research and development fees, software payments and fees for services paid to foreign companies without a permanent establishment in Oman, and pay it to the Tax Authority by the end of the following month. Treaties can reduce the rate.
Personal income tax from 2028
From 1 January 2028, Oman will tax individuals at 5% on annual income above OMR 42,000, making it the first GCC state with a personal income tax. Most residents will not be affected.
Global minimum tax
Oman applies a domestic minimum top-up tax at 15% to members of multinational groups with revenue of €750 million or more in two of the last four years.
Key dates
- QuarterlyVAT return and payment, by the end of the month after the quarter
- MonthlyWithholding tax payment, by the end of the month after the payment
- Within four months of the year-endAnnual income tax return
- February 2027Fawtara e-invoicing begins for the largest businesses
- August 2027Fawtara e-invoicing begins for other businesses
Figures and sources
13 figures- Corporate income tax rate15%Checked against the official source
- Reduced rate for qualifying small businesses3%Checked against the official source
- VAT rate5%Checked against the official source
- Fawtara phase 1 go-live (largest businesses; threshold not yet confirmed officially)February 2027Checked against the official source
- Annual supplies above which VAT registration is mandatoryOMR 38,500Checked against the official source
- Withholding on royalties, management fees, research fees, software and services paid abroad10%Checked against the official source
- Personal income tax rate from 1 January 20285%Checked against the official source
- Annual income above which personal income tax appliesOMR 42,000Checked against the official source
- Domestic minimum top-up tax rate15%Under professional review
- Group revenue (in two of the last four years) for the domestic minimum top-up tax€750 millionUnder professional review
- Conditions for the small business ratecapital up to OMR 50,000, gross income up to OMR 100,000, no more than 15 employees, and Omani ownershipChecked against the official source
- Annual supplies or expenses above which voluntary VAT registration is allowedOMR 19,250Checked against the official source
- Fawtara phase 2 go-live (other businesses)August 2027Checked against the official source
Indicative only. This assessment is a high-level overview of tax obligations in Oman based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult an Omani tax adviser before making compliance decisions.