Effective for tax years beginning after 31 December 2016, the tax rate for branches of foreign entities (regardless of country) will be a flat 15%. Previously, branches were subject to tax at the rate of 12% on income over OMR 30,000.
Expenses incurred by the head office that can be identified as directly related to the branch’s activity are deductible. The deduction for other head office expenses is limited to 3% of the branch’s gross income for the year. This rate is 5% for banks and insurance companies, and 10% for high-tech industrial activities.
Last Reviewed - 05 November 2017