Om Corporate Income Tax

---
name: om-corporate-income-tax
description: "Corporate income tax for Oman, tax year 2026: 15%, 3% and 55% rates, withholding on non-residents, losses, depreciation, returns, portal services and penalties, from the Income Tax Law and Tax Authority FAQs."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/om-corporate-income-tax"
  jurisdiction: "OM"
  tax_year: "2026"
  last_updated: "2026-11-03"
---

# Oman Corporate Income Tax v1.3

> **General reference only.** This Guide is a draft for AI-assisted reference. Independent review accepts only the documented partial source closeout and its recorded conditions. It has not received accountant attestation. Do not use it to file, pay or take a position without professional review.

## Who this applies to

Establishments, Omani companies and permanent establishments of foreign persons (arts 2, 112). A permanent establishment is a fixed place of business in Oman, including a branch, office, factory or dependent agent (art. 2). All commercial register holders must register for income tax, whatever the grade, even with losses (https://tms.taxoman.gov.om/portal/web/taxportal/income-tax-faqs, question 1). The Top-up Tax on large groups is in the [overview](om-tax-overview.md).

## Rates, bands and thresholds

| Item | Amount | Tax year | Official URL |
|---|---|---|---|
| Standard rate | 15% of taxable income (art. 112) | 2026 | https://tms.taxoman.gov.om/portal/documents/20126/1455220/income+tax+law+english.pdf |
| Small enterprise rate | 3% (art. 159bis 15) | 2026 | same |
| Small enterprise conditions | NONOPERATIVE HOLD: FAQ gives capital 60 thousand, gross income 150 thousand, 25 workers and no occupational activity; implementing excess decision not recovered | 2026 | https://tms.taxoman.gov.om/portal/web/taxportal/income-tax-faqs |
| Small enterprise exemption | Excluded from the 3% tax if run full time by the owner or a partner, or employing at least two Omanis (art. 159bis 15); a return is still due | 2026 | https://tms.taxoman.gov.om/portal/documents/20126/1455220/income+tax+law+english.pdf |
| Petroleum | 55% of income from sale of petroleum (art. 114) | 2026 | same |
| Withholding | 10% of the gross amount (arts 52, 113) | 2026 | same |
| Industrial enterprise | 5 years from production, by decision (art. 118) | 2026 | same |
| Late tax | 1% a month (art. 156) | 2026 | same |
| Late or missing return | OMR 100 to 2,000 (art. 179) | 2026 | same |
| Incorrect return | 1% to 25% of the tax difference (art. 180) | 2026 | same |
| Failure to produce documents | OMR 200 to 5,000 (art. 181) | 2026 | same |

## The base

Accounts follow the accrual basis and international accounting standards (art. 12). Small enterprises prepare the income statement on a cash basis unless the Authority approves another, subject to arts 13 and 46 (art. 159bis 10); art. 159bis 9 requires supporting books and records. Exempt: dividends from Omani companies and gains on securities listed in Muscat (art. 115). Shipping income of an Omani owner is exempt (art. 116). Losses carry forward for up to five years from the end of the loss year (art. 71); exempt activities cannot carry a loss (art. 72). Depreciation pools: 33 1/3% for machinery, computers, vehicles, fixtures and software; 10% for rigs; 15% for other plant (art. 90). Related-party transactions can be adjusted (art. 125). First accounting period: up to 18 months (art. 50). A register opened from January to June closes that 31 December; from July to December it closes the next 31 December (https://tms.taxoman.gov.om/portal/web/taxportal/income-tax-faqs, question 5).

## Deadlines and filing

| Step | Rule | Official URL |
|---|---|---|
| Tax card | Request when incorporating or registering (art. 11) | https://tms.taxoman.gov.om/portal/documents/20126/1455220/income+tax+law+english.pdf |
| Notification | Non-register cases: 60 days from start, 30 days for changes (art. 11) | same |
| Return, 15% | Before four months end after the year | https://tms.taxoman.gov.om/portal/web/taxportal/income-tax-faqs |
| Return, 3% and SME-regime-exempt taxpayers | Before three months end after the year | https://tms.taxoman.gov.om/portal/web/taxportal/income-tax-faqs |
| No activity and no workers during the tax year | Zero return with a stamped and signed non-practice letter | https://tms.taxoman.gov.om/portal/web/taxportal/income-tax-faqs |
| Pay | Due on the return date (art. 150), via Claims and Payments on the portal | https://tms.taxoman.gov.om/portal/web/taxportal/income-tax-faqs |
| Withholding | 14 days from the end of the month paid or credited, with the form; copy to the recipient (art. 53) | https://tms.taxoman.gov.om/portal/documents/20126/1455220/income+tax+law+english.pdf |
| Objection | 45 days from assessment/decision notice, with written detailed grounds; late acceptance for proven unforeseen circumstances; objection does not itself stop payment (arts 160, 160bis). Portal service 12 | https://tms.taxoman.gov.om/portal/web/taxportal/income-tax-faqs |

How to file: sign in to the Tax Authority portal, open income tax services, choose service No. 6 (final returns), complete the return, attach the accounts or the statement of income, submit, then pay through Claims and Payments. Amend registration details with service No. 9. The principal officer gives others access through Representation Rights (https://tms.taxoman.gov.om/portal/web/taxportal/income-tax-faqs, questions 2, 6, 7, 8). The box numbers of the return are not in any page we opened.

## Penalties and interest

Art. 156 additional tax of 1% a month, which the Chairman may relieve. Fines as in the table. Deliberate failure to file by the principal officer: 1 to 6 months in prison and a fine of OMR 500 to 20,000, or either (art. 184). Collection normally lapses after seven years from due payment; statutory notices and legal claims interrupt it, and a final judgment for the Authority gives a new fifteen-year period (art. 157).

## Cross-border points

Withholding covers royalties, research and development, software, and management or service fees paid to a non-resident without an Oman permanent establishment, or to one with a permanent establishment where that payment is not included in its gross income (arts 40, 52; https://tms.taxoman.gov.om/portal/web/taxportal/income-tax-faqs, questions 11, 12, 14). Not subject: conferences and exhibitions, transport, shipping and insurance of goods, training, air tickets and hotels abroad, board meetings, reinsurance, and services tied to activity or property outside Oman (https://tms.taxoman.gov.om/portal/web/taxportal/income-tax-faqs, question 15). Foreign tax credit: apply within two years of the year end (art. 124). Treaties: art. 120 and following. The Tax Authority rate page names interest and the law names dividends in the withholding list, so see the Not yet confirmed line before withholding on either.

## Two worked examples that recompute

**1. Company with taxable income OMR 100,000.** Tax at 15% is OMR 15,000; a late payment of three months adds OMR 450.

```oa-check
name: Standard company with three months late
inputs:
  income: 100000
  months: 3
steps:
  - tax: income * 0.15
  - additional: tax * 0.01 * months
expected:
  tax: 15000
  additional: 450
```

**2. Decision: does a small establishment with profit OMR 40,000 fall at 3%, or 15% once it fails a condition?** If the standard regime applies for the comparison year and no exemption or continuation rule applies, the difference is OMR 4,800. The switch is not automatic on every threshold crossing: arts 159bis 4 and 5 govern the following-year start and permitted excesses.

```oa-check
name: Small enterprise against standard rate
inputs:
  profit: 40000
steps:
  - small: profit * 0.03
  - standard: profit * 0.15
  - cost: standard - small
expected:
  small: 1200
  standard: 6000
  cost: 4800
```

## Ask the client first

- Legal form, and is the owner Omani or foreign?
- Registered capital, gross income, worker count, and activity?
- Does the owner run it full time, and how many Omanis work there?
- Year end, and first period dates?
- Payments to non-residents, and their type?
- Any petroleum, industrial or shipping activity?

## Sources

| Source | URL | Read on |
|---|---|---|
| Income Tax Law, RD 28/2009, authority-hosted English consolidation to RD 118/2020 (selected complete clauses: 1, 2, 11, 12, 40, 42 to 53, 69 to 72, 90, 112 to 116, 118, 124, 125, 150, 156, 157, 159bis and 159bis 4 to 6, 9 to 19, 160, 160bis, 179 to 181, 184; scope is recorded in the closeout ledger, not later-amendment closure) | https://tms.taxoman.gov.om/portal/documents/20126/1455220/income+tax+law+english.pdf | 2026-11-01 |
| Tax Authority, Income Tax FAQs (all 16 read) | https://tms.taxoman.gov.om/portal/web/taxportal/income-tax-faqs | 2026-11-01 |
| Tax Authority, Tax Rates page (whole page read) | https://tms.taxoman.gov.om/portal/tax-rate | 2026-11-01 |

Not yet confirmed: the implementing decision behind the FAQ thresholds of OMR 60,000 / OMR 150,000 / 25 workers (the consolidated statute art. 159bis starts at OMR 50,000 / OMR 100,000 / 15 and art. 159bis 5 permits specified excesses). These eligibility figures are NONOPERATIVE until that decision and its conditions are recovered; do not qualify a client using the FAQ alone. Also open: the predecessor’s worldwide-income assertion and historic provisional-return obligation are retained as NONOPERATIVE topics until their current decisive provisions are checked; the original SME-development registration assertion is not supported by the opened law/FAQ and is held. the current status of withholding on dividends and interest (the law lists dividends, the portal rate page lists interest, FAQ 12 lists neither, and the suspension decisions were not opened); the provisional return in the old skill (no provision found in the consolidated text); the article setting the four-month deadline (art. 134 could not be located in the English PDF, the FAQ states it); the currency of the small enterprise thresholds, which the FAQ gives without saying rials; whether RD 56/2025 art. 3 changes withholding before 2028; amendments to the Income Tax Law after RD 118/2020; statutory audit of tax accounts.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-11-03. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `om-corporate-income-tax` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/om-corporate-income-tax. If neither is available, confirm every figure against the official source pages cited above before relying on it.