Oman taxes resident and non-resident entities on a broadly worldwide/source basis depending on entity type - Oman does have a general corporate income tax (unlike several GCC neighbors), applying to Omani and foreign-owned businesses alike, though Oman has no general personal income tax on individuals. Oman operates a self-assessment system, with the Oman Tax Authority conducting post-filing review.
The Omani tax year is generally the calendar year (a company may adopt a different fiscal year with approval). The corporate filing deadline is generally within 4 months of the fiscal year-end.
Oman's headline corporate income tax (CIT) rate is 15%.
The headline personal income tax (PIT) rate is 5% over OMR 42,000 (effective 1 January 2028).
The standard VAT/GST (or equivalent consumption tax) rate is 5%.
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).
A non-Omani entity has an Oman permanent establishment through a fixed place of business or a dependent agent habitually concluding contracts in Oman on the entity's behalf, following the OECD Model Treaty definition as applied under Omani domestic law and any applicable tax treaty.
Oman has no CFC regime.
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.
Oman does not use an elective check-the-box classification system; entity classification generally follows the entity's actual legal characteristics. Oman does not have a comprehensive ATAD2-style anti-hybrid regime.
No foreign bank account or foreign financial asset reporting regime exists in Oman requiring residents to separately disclose foreign accounts.
Oman does not have a Controlled Foreign Company regime and does not provide a broad participation exemption for foreign dividends in the European sense.
Oman has a foreign tax credit mechanism for foreign tax paid on foreign-source income also taxed in Oman, capped at the Omani tax otherwise due on that income.
Per the Oman Tax Authority's own official treaty list, Oman has 44 double tax agreements in force, spanning treaties signed between 1989 (France, the first) and 2024 (Egypt, Estonia, Tanzania, Cyprus, and Luxembourg, all effective January 1, 2026). Named partners include Algeria, Belarus, Brunei, Canada, China, Croatia, Cyprus, Egypt, Estonia, France, Hungary, India, Iran, Ireland, Italy, Japan, Korea, Lebanon, Luxembourg, Mauritius, Moldova, Morocco, the Netherlands, Pakistan, Portugal, Qatar, Russia, Seychelles, Singapore, Slovakia, South Africa, Spain, Sri Lanka, Sudan, Switzerland, Syria, Tanzania, Thailand, Tunisia, Turkiye, the UK, Uzbekistan, Vietnam, and Yemen. Separately, Oman ratified DTAAs with Bahrain and Kazakhstan in September 2025, though as of the Tax Authority's own most recently checked list these two did not yet appear as in force. A first-time Cyprus-Oman treaty (signed December 8, 2024) 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.