Oman

Double Tax Avoidance Agreements

On 30 May 2024, the Sultanate of Oman and the Republic of Ireland (‘the contracting states‘) signed a Double Tax Avoidance Agreement (DTAA). The DTAA was ratified by Ireland on 20 September 2024 and by the Sultanate of Oman on 19 November 2024 vide Royal Decree RD 60/2024. The DTAA shall be effective from the following dates:

• For withholding taxes (WHTs): The first day of January following the date on which the DTAA enters into force.
• For other taxes: The tax year commencing on or after first day of January following the date on which the DTAA enters into force.

On 27 October 2024, the Sultanate of Oman and the Republic of Estonia (‘the contracting states‘) signed a DTAA. Furthermore, the DTAA was ratified on 10 December 2024. The date that this agreement goes into effect is subject to completion of administrative procedures.

On 8 December 2024, the Sultanate of Oman and the Republic of Cyprus (‘the contracting states‘) signed a DTAA. This agreement is now in effect. 

On 15 December 2024, the Sultanate of Oman and the Republic of Tanzania (‘the contracting states‘) signed a DTAA. The date that this agreement goes into effect is subject to completion of administrative procedures. 

Digital Tax Stamps

The Oman Tax Authority (OTA) had previously implemented the Digital Tax Stamp system for excisable products, including cigarettes, shisha, and other tobacco products. In July 2023, the OTA aimed to expand this system to encompass carbonated drinks, energy drinks, and sweetened beverages. However, this initiative was subsequently suspended. In October 2024, the OTA decided to enforce the provisions for carbonated beverages, sweetened beverages, and energy drinks, effective from 1 February 2025.

Pillar 2

On 31 December 2024, Oman announced the implementation of a minimum top-up tax of 15% on multinational enterprise (MNE) groups in line with global rules to combat base erosion and profit shifting. This step is taken as a commitment to Pillar 2, which aims to ensure an appropriate level of tax is paid by MNEs through a series of measures aimed at modernising the international tax system. Further details are awaited through the Executive Regulations

Special Economic Zones

Two new Special Economic Zones have been established in Oman:

1. Governorate of Dhahirah (Royal Decree 87/2025)

2. Rawdah (Royal Decree 88/2025).

These zones are governed by the newly issued Law of Special Economic Zones and Free Zones (Royal Decree 38/2025), which sets out the regulatory framework, incentives, and exemptions available to entities operating within these zones. The law provides for tax exemptions for enterprises and operators in these zones, including exemption from all types of taxes imposed by the Income Tax Law for a period of 10 years (renewable for certain activities), subject to specific exclusions (e.g., banks, insurance companies, telecoms, and certain transport companies). Customs exemptions and other investment protections are also included.