In February 2017, significant changes were implemented to the
corporate tax regime in Oman. The main amendments, which include an
increase in the standard corporation tax rate and an extension of
the withholding tax scope, are set out below.
Who is affected?
The changes affect Oman taxpayers, as well as foreign companies
without a local permanent establishment that receive certain types
of income from Oman. In addition, the changes will also impact
small and medium enterprises.
Key changes
Changes to corporate tax rates
The standard corporate income tax rate has increased from 12% to
15%.
A new lower rate of 3% has been introduced for small businesses
that meet certain turnover, capital, and minimum employee
conditions, and do not fall within specified industry sectors. The
lower rate will be irrelevant to most "foreign" (i.e.
non-GCC) controlled companies because of the relatively high share
capital requirements imposed on these foreign companies under
