Oman currently has 35 effective double taxation treaties (comprehensive and limited) with other countries/territories, in order to avoid double taxation and allow cooperation between Oman and foreign tax authorities to enforce their respective tax laws. The Oman network has concluded effective tax treaties with Algeria, Belarus, Brunei, Canada, China (People`s Republic), Croatia, France, Hungary, India, Iran, Italy, Japan, Korea (Rep.), Lebanon, Mauritius, Moldova, Morocco, Netherlands, Pakistan, Portugal, Seychelles, Singapore, South Africa, Sri Lanka, Sudan, Switzerland, Syria, Spain, Thailand, Tunisia, Turkey, the United Kingdom, Uzbekistan, Vietnam and Yemen. The maximum WHT rates provided by DTTs in Oman are shown in the table below. There are also agreements with different countries that are not yet in force. It is likely that the foreign company from Oman (due to the presence of envoys in Oman) may engage in a permanent establishment (PE), which may require a separate review from a corporate tax perspective. The existence of a representative of a foreign entity in respect of a business or contract in Oman may trigger the taxable presence of the unit in Oman for corporate tax purposes. In accordance with the common customs system in force in the Gulf Cooperation Council (GCC) States, Oman applies flat-rate duties of 5% on the majority of goods entering the GCC. Customs duties are collected at the first GCC point of entry. Subsequent movements of the same goods cleared within the GCC are exempt from customs duties. The employer of an expatriate or expatriate is required not to pay social security contributions in Oman. The table contains a summary of WHT rates under the tax treaties applicable to Oman on December 1, 2018.
Under some contracts, dividends qualify for a reduced WHT rate when the beneficial owner is a company holding a certain percentage of the voting rights of the distributing company. In addition, according to some contracts, a lower WHT rate applies to interest on government bonds or government-backed debts. The term “income realized in Oman”, fundamental for the triggering of withholding tax rules in the sultanate, is now defined. Under the new definition, revenues would be considered realized in Oman “if the source of such funds comes from Oman”. Explore articles, enter your interests or learn more. There are currently no exchange controls in Oman. It shall apply in Oman from 1 January 1996 and in the United Kingdom it shall apply from 1 January 1979 in terms of profits, revenues and profits from the operation of ships and aircraft in international traffic. Oman administers an income tax regime applicable to enterprises and a wide range of other business activities, including general trading companies, limited partnerships, joint venture agreements and permanent establishments of foreign companies. A natural person is subject to income tax to the extent that he carries out commercial, commercial or professional activities as “property”. At present, there is no income tax in Oman. .