Oman Tax: Key Updates for 2024
Corporate Tax Rates
Oman’s corporate tax system is simple, transparent, and designed to support businesses of all sizes:
- 3% Corporate Tax Rate: Companies with annual revenues below 100,000 OMR benefit from a reduced corporate tax rate of just 3%. This rate is particularly advantageous for startups and small enterprises, allowing them to retain more capital for reinvestment and growth.
- 15% Corporate Tax Rate: Companies exceeding 100,000 OMR in annual revenue are taxed at a rate of 15% on their profits. This rate is still competitive compared to other regional markets, offering a balanced tax environment for mid to large-scale businesses.
These straightforward corporate tax rates make tax planning simpler and more predictable, helping businesses of all sizes navigate Oman’s tax framework with ease.
Value-Added Tax (VAT)
Oman’s VAT system is designed to be business-friendly, with a competitive structure that benefits both local companies and those involved in international trade:
- 5% VAT on Domestic Sales: A VAT rate of 5% is applied to goods and services sold within Oman. This is considered a relatively low VAT rate, helping companies manage their operational costs effectively while remaining competitive in the local market.
- Zero VAT on Exports: One of the significant advantages for businesses with international clients is that exports from Oman are exempt from VAT. This policy allows Omani companies to offer more competitive pricing on the global market, making Oman an attractive base for export-driven businesses.