Oman

Overview

Last reviewed - 02 December 2019

Oman, an Arab country located on the southeast coast of the Arabian Peninsula, is bordered by the United Arab Emirates to the northwest, Saudi Arabia to the west, and Yemen to the southwest. Oman is divided into five regions and four governorates, with Muscat as the capital. The official language of Oman is Arabic, and the currency is the Omani rial (OMR).

Oman has a middle-income economy that is heavily dependent on dwindling oil resources. As a result of declining reserves, Oman has actively pursued a development plan that focuses on diversification, industrialisation, and privatisation, with the objective of reducing the oil sector's contribution to gross domestic product (GDP) to 9% by 2020.

In 2016, the Tanfeedh initiative was enacted with the focus of enhancing economic diversification within the Sultanate and sustaining participation between the public and private sectors. Namely, the key components of the government's diversification strategy under the Tanfeedh initiatives are: manufacturing, tourism, transport, logistics, mining, and fisheries.

With 70% of ownership available to foreign investors, Oman has also been attracting a large amount of foreign investment. The government has outlined initiatives to modernise the local economy and privatise state utilities. A significant increase in government spending and foreign direct investment has led to the development of the following sectors:

  • Oil and gas: Oil and gas activities continue to dominate the economic performance of Oman.
  • Construction and infrastructure: As a result of large-scale public and private investment in infrastructure development, industrial, tourism, and commercial property projects, construction sector output has significantly grown. The government also intends to attract high-technology investors to free zones being developed in Duqm, Muscat, Sohar, Salalah, and other developed free zones.
  • Real estate and tourism: As with other Gulf Cooperation Council (GCC) countries, Oman has seen a number of significant developments in the real estate and tourism sector, including the establishment of several integrated tourism complexes and an increase in the number of tourism-related projects (e.g. golf courses and hotels), as well as integrated tourism complex (ITC) projects.

PwC Oman provides a comprehensive set of services covering industries including banking and capital markets, energy, utilities and mining, financial services, government/public services, health industries, industrial products/manufacturing, insurance, Islamic banking and Takaful, real estate, telecommunication, transportation, and logistics.

PwC Oman is part of the PwC Middle East practice, with over 550 tax professional staff committed to providing valued quality services. The PwC legal and tax practice in Oman provides specialised assistance in indirect taxation (value-added tax [VAT], excise tax, and customs tax), fiscal reforms, international and corporate income taxation, mergers and acquisitions, private equity, tax advisory, tax management, and transfer pricing.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%) 15
Corporate income tax (CIT) due dates
CIT return due date Within six months from the end of accounting period.
CIT final payment due date Along with the final tax return (i.e. within six months of the end of the accounting period).
CIT estimated payment due dates Along with the Provisional Return of Income, due within three months of the end of the accounting period.
Personal income tax (PIT) rates
Headline PIT rate (%) NA
Personal income tax (PIT) due dates
PIT return due date NA
PIT final payment due date NA
PIT estimated payment due dates NA
Value-added tax (VAT) rates
Standard VAT rate (%) NA
Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy) Resident: NA;
Non-resident: 10 / 10 / 10
Capital gains tax (CGT) rates
Corporate capital gains tax rate (%) Gains on sales of securities listed on the Muscat Securities Market are exempt from taxation. Gains on transfers of other assets are taxable as ordinary income.
Individual capital gains tax rate (%) NA
Net wealth/worth tax rates
Headline net wealth/worth tax rate (%) NA
Inheritance and gift tax rates
Inheritance tax rate (%) NA
Gift tax rate (%) NA

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.

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