Income Tax FAQs

Income tax applies to all commercial registers regardless of its grades and it is imposed on annual profits. All holders of the CR must register for income tax. Income tax can only be abolished by cancelling the Commercial Register. In case of the legal form of the CR "individual trader", you must visit the Tax Authority to obtain a certificate of cancellation for the CR, and after canceling the commercial registration, you must visit the Tax Authority to close the tax file. In case of the legal form "Omani company", please first obtain a certificate of commencement of liquidation works from the electronic portal and then visit the Tax Authority after the lapse of six months from the date of the start of liquidation to obtain a certificate of completion of liquidation works.

The tax return is the form that taxpayer must submit at the end of each tax year and it is submitted through the portal service No. 6 (final returns). The taxpayers who are subject at 3% should submit the return before the expiry of three months starting from the date of the end of the tax year, and those who are subject to tax at 15% should submit their returns before the expiry of four months starting from the date of the end of the tax year. For establishments which the provisions of Chapter V bis of the Income Tax Law apply, and which are subject to tax at 3%, should submit the return including gross income and expenses. As for those who are subject to 15%, they must submit the return with attachment for the audited accounts. People who are completely free must submit the return with proof of their entitlement to the exemption conditions. Also, those who did not practice the activity and did not have workers during the tax year must submit the return by filling the fields of revenues and expenses with zero and attaching the letter of non-practice of activity with the stamp and signature on the electronic website.

A document issued by the Tax Authority to prove the registration of the taxpayer to income tax with the Tax Authority and the taxpayer’s commitment to the obligations imposed on him by law. The tax card is used to enable the taxpayer to deal with government bodies and companies such as the bank to open a company account or the Ministry of Labor to renew workers. It is extracted and renewed through the website of the Tax Authority via the electronic services, service No. 21 (tax cards). Its fees is 10 riyals, valid for two years. To know how to obtain or renew it, please follow the steps attached in the guide manual.

Tax rate 3% of annual profit Tax rate 15% of annual profit The establishment which is subject to 3% is the one that meets all the following conditions: -The capital registered in the CR does not exceed 60 thousand -The annual gross income does not exceed 150 thousand -The number of workers does not exceed 25 workers -It should not be an occupational activity. The establishment is exempted from tax and not from submitting the return if the four conditions of the institution are met in addition to one of the two conditions: 1. If the owner of the establishment or one of the partners is free to manage it.

When determining the first accounting period for the taxpayer, it can be less than a period of twelve months and not exceeding 18 months - Article 50 of the Income Tax Law -. If the start of the establishment of the commercial register is from January to June, the end of the accounting period shall be in the same year (31 December of the same year). If the start of the establishment of the commercial register is from July to December, the end of the accounting period shall be in the next year of December (31 December of the next year).

The taxpayer can amend the data in income tax through the electronic portal through the income tax services, service No. 9 (Declarations of Details).

Dues can be paid from the portal by going to the( Claims and Payments Service) and choosing the appropriate payment method. Also, you or one of the assigned persons may attend to the Tax Authority.

The principal officer can add the access permissions to another user in the income tax by going to the income tax services and clicking on the ( Representation Rights ) service.

You can submit the objection through the electronic portal, service No.12 (Objections).

According to Article 156 of the Income Tax Law, an additional tax of 1% is imposed per month of the value of unpaid amount of the tax due and payable. The penalty is calculated for the period during which this tax has not been paid. In the event of failure to submit the income tax return, the Chairman of the Tax Authority may impose a penalty on the taxpayer of not less than 100 RO, and not exceeding 2000 RO

It is a tax imposed on the amounts transferred to a foreign person/company that does not have a permanent establishment in the Sultanate of Oman.

1. Royalty
2. Consideration for conducting research and development
3. Consideration for the use or the right to use computer programs
4. Fees for management
5. Performance of services

The taxpayer is the one who must deduct the Tax and supply it to the Tax Authority accompanied by a statement on the form prepared for this purpose.

10% of the total amount transferred to foreign companies.

• Participation in organizations, conferences, seminars or exhibitions.
• Transport, shipping and insurance of goods.
• Training.
• Airline tickets and accommodation costs abroad.
• Board meetings.
• Reinsurance payments.
• Any services related to an activity or property located outside the Sultanate of Oman.

The taxpayer shall supply the withholding tax no later than the fourteenth day of the end of the month in which the amount was paid or credited.