Oman Corporate Tax 9% Explained
Oman's corporate tax landscape is a two-bracket system: 9% on taxable income for most businesses, with a higher 15% bracket on certain large-corporate or foreign-shareholder structures. The Income Tax Law was modernised under Royal Decree 47 of 2022 and its Executive Regulations. Here is what the brackets actually mean, who pays which rate, and how the OMR 30,000 small-business exemption sits inside the rate scale.
The two-bracket system
Oman's corporate income tax under the Income Tax Law (RD 28/2009 as amended by RD 47/2022) operates with two main rates. Most domestic Omani-owned LLCs and SMEs pay 9% on taxable profits exceeding OMR 30,000 (with profits below that exempt under the small business regime). Foreign-owned branches and certain large corporates fall under the 15% bracket. The OMR 375,000 figure that often appears in tax conversations is actually the registration threshold for VAT (a separate tax) and the filing-method threshold for some categories of taxpayers, not the corporate-tax bracket boundary itself.
Who is exempt or specially rated
Specific exemptions exist for certain industries and free zones. Sohar, Salalah, Duqm, and Al Mazyunah free zones offer corporate tax holidays of 25-30 years for qualifying activities. Companies in specific sectors (mining, manufacturing, fisheries, agriculture, education, healthcare) can apply for 5-year renewable tax exemptions. Petroleum companies fall under separate rules under their concession agreements (typically 55%).
Filing and deadlines
Provisional return is due within 3 months of the end of the financial year; final return within 6 months. Tax is paid in two instalments - the provisional payment with the first return, and the balance with the final. Late filing carries 1% per month. Late payment carries an additional surcharge. The Oman Tax Authority moved most filing online via its e-portal; paper filing is now exceptional.
Withholding tax
Oman withholds tax on payments to non-residents at 10% on dividends, interest, royalties, technical service fees, management fees, and similar. The withholding regime was significantly broadened under RD 47/2022 to capture more cross-border services. Tax treaties may reduce the rate; Oman has a wide treaty network including the UAE, Saudi Arabia, India, UK, France, Italy, and others.
How the rate applies
Corporate tax is computed on accounting profit adjusted for tax purposes (non-deductible expenses added back, exempt income removed, depreciation per tax rules rather than book rules). Apply the relevant rate to the adjusted base. For a domestic LLC with OMR 500,000 taxable profit, the calculation is OMR 500,000 - OMR 30,000 small-business exemption = OMR 470,000 taxable; 9% of OMR 470,000 = OMR 42,300. The 0% band below OMR 30,000 still applies in current practice for qualifying small businesses.
Common questions
Is the corporate tax rate going up to 15%?
There has been no announcement to raise the 9% rate for general corporates. The 15% bracket applies in specific corporate structures and foreign-ownership cases under existing law.
What is the OMR 375K figure?
It is most commonly the VAT registration threshold (separate tax). For corporate tax, the OMR 30,000 small-business exemption is the relevant lower band.
Are dividends taxed in Oman?
Domestic dividends from Oman-resident companies are generally exempt at the recipient level; cross-border dividends paid to non-residents face withholding tax.
How do free zones affect the rate?
Qualifying free-zone entities can secure long tax holidays. The conditions are activity-specific and require formal registration with the free-zone authority and the tax authority.
When is the Oman corporate tax return due?
Provisional within 3 months of fiscal year end; final within 6 months.
Source
For official figures and the latest text of the law: Oman Tax Authority. We update this page when published rates change. For high-stakes decisions, verify against the official source.