Contact Us
Oman
Corporate - Significant developments
Last reviewed - 01 January 2025On 30 May 2024, the Sultanate of Oman and the Republic of Ireland (‘the contracting states‘) signed the Double Tax Avoidance Agreement (DTAA). The DTAA was ratified by Ireland on 20th September 2024 and by the Sultanate of Oman on 19th November 2024 vide Royal Decree RD 60/2024. The DTAA shall be effective from the following dates:
- For withholding taxes - 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 Double Tax Avoidance Agreement (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 08 December 2024, the Sultanate of Oman and the Republic of Cyprus (‘the contracting states‘) signed a Double Tax Avoidance Agreement (DTAA). The date that this agreement goes into effect is subject to completion of administrative procedures.
On 15 December 2024, the Sultanate of Oman and the Republic of Tanzania (‘the contracting states‘) signed a Double Tax Avoidance Agreement (DTAA). The date that this agreement goes into effect is subject to completion of administrative procedures.
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.
On 31st December 2024, Oman announced the implementation of minimum Top-up Tax of 15 percent on Multinational Groups (MNEs) in line with global rules to combat base erosion and profit shifting. This step is taken as a commitment to the 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.
