Every company operating in the Sultanate of Oman needs a clear picture of its corporate income tax obligations. Whether you run an established LLC in Muscat or are planning a new venture, understanding the framework administered by the Oman Tax Authority (OTA) is essential to staying compliant and avoiding penalties.

The headline rates

Oman levies corporate income tax on the taxable profits of businesses. The standard rate is 15%, applying to most companies and permanent establishments. A reduced regime with a 3% rate exists for qualifying small enterprises that meet conditions relating to capital, revenue and headcount.

Who must register and file?

  • All companies carrying on commercial activity in Oman must register with the Oman Tax Authority.
  • Annual income tax returns must be filed electronically, together with audited financial statements where required.
  • Returns and payment are generally due within the deadlines set from the end of the accounting year — late filing attracts financial penalties.

Withholding tax

Payments made by Omani entities to foreign persons without a permanent establishment in Oman — such as royalties and certain service fees — can attract withholding tax at 10%. Businesses making cross-border payments should assess each payment category carefully before remitting.

What's changing: personal income tax on the horizon

Under Royal Decree 56/2025, Oman will become the first GCC state to introduce a personal income tax — 5% on natural persons' income above OMR 42,000, effective from January 2028. While this is a personal (not corporate) tax, employers should start reviewing payroll systems and compensation structures well ahead of time.

Five compliance habits that keep you penalty-free

  1. Register with the OTA promptly when you start activity.
  2. Keep IFRS-compliant books all year — not just at year-end.
  3. Diarise your filing and payment deadlines from the close of your financial year.
  4. Assess withholding tax before making any payment to a foreign supplier.
  5. Get advance advice for restructurings, related-party dealings and cross-border transactions.

How GCCA can help

GCCA's tax team handles corporate tax registration, computation, return filing and OTA representation for businesses across Oman. If you would like a review of your current tax position — or you're setting up and want to start right — explore our tax consultancy services or message us for a consultation.

Disclaimer: This article is general information, not professional advice. Tax rules and thresholds change — always confirm the current position with the Oman Tax Authority or speak to a GCCA consultant before acting.