Tax
Fifteen per cent corporate tax, five per cent VAT, no income tax yet
Corporate income tax is fifteen per cent and VAT five per cent. Oman has legislated a personal income tax to begin in 2028, the first in the Gulf.
Key rules
- Jurisdiction — Oman Tax Authority. Objections go to the Tax Authority then the Tax Grievance Committee and the courts.
- Deadline — 4 months after the end of the accounting period to file the corporate return
- Deadline — 30 days after the end of the tax period to file a VAT return
Governing law
- Income Tax Law, Royal Decree 28 of 2009, as amended
- VAT Law, Royal Decree 121 of 2020 — 5% from April 2021
- Personal Income Tax Law, Royal Decree 56 of 2025 — effective 2028
In practice
Oman's enactment of a personal income tax to take effect in 2028 is a genuine regional first and breaks the Gulf's defining fiscal characteristic, so it should not be described as a proposal. It is legislated, at five per cent on high earners above a substantial threshold. Corporate tax at fifteen per cent applies to Omani and foreign companies alike, unlike the ownership-based split in Saudi Arabia and Kuwait, with a reduced rate for small enterprises. VAT remains at five per cent, half the Saudi and Bahraini rate.