Middle East

Oman

Corporate rate
15%
Top personal rate
5%
VAT / GST rate
5%
One-sentence summary Oman's corporate tax position: 15. Personal income tax: 5% over OMR 42,000 (effective 1 January 2028). VAT/consumption tax: 5.

Corporate Tax Rate

Oman's headline corporate income tax (CIT) rate is 15.

Personal Tax Rate

The headline personal income tax (PIT) rate is 5% over OMR 42,000 (effective 1 January 2028).

VAT / GST Rate

The standard VAT/GST (or equivalent consumption tax) rate is 5. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.

Residency

Oman currently levies no personal income tax (a 5% PIT on income above OMR 42,000 is scheduled to take effect from January 2028) - individual residency has no current domestic tax significance, though some sources describe a practical 180-day-in-a-calendar-year threshold relevant for other purposes. For entities, Oman's Income Tax Law taxes the worldwide income of entities formed/incorporated in Oman - notably not a purely territorial system for domestic entities - while foreign branches/permanent establishments are taxed only on Oman-source income. The standard corporate rate is 15% (special reduced rates apply for qualifying small Omani proprietorships/LLCs).

CFC Rules

Oman has no CFC regime.

Thin Capitalization

Interest on related-party debt is deductible only to the extent the borrower's debt-to-equity ratio does not exceed 2:1 (and loan terms are at arm's length); interest on the excess above that ratio is non-deductible. Banks, insurance companies, PEs of foreign companies, and Omani proprietary establishments are excluded from the rule. Interest on unrelated-party loans and bank loans is unrestricted.

Treaty Network

Oman maintains double tax treaties with roughly 37-43 countries depending on the source (Moore Global's named list includes Algeria, Canada, China, France, India, Japan, South Korea, the Netherlands, Qatar, Russia, Singapore, Switzerland, the UK, and Cyprus among others). A first-time Cyprus-Oman treaty (signed December 8, 2024) entered into force March 5, 2025 and became effective January 1, 2026. A Royal Directive effective January 11, 2023 suspended withholding tax on dividends and interest paid to non-resident investors entirely, regardless of treaty status.

Source: PwC Worldwide Tax Summaries - Oman (secondary compilation, cited per jurisdiction). Rates last reviewed by PwC: 07 July 2026. Page last verified: August 07, 2026. General information only - confirm current rates and any specific position with a licensed advisor in this jurisdiction before relying on this page.