Taxation
Compliance handled, positions defended, and the next requirement anticipated.
Who it is for
For VAT-registered businesses, companies facing an assessment or appeal, groups with related-party transactions, and any organisation trying to work out what Oman's incoming tax changes mean for it in practice.
- 01
Tax Compliance
Registration, return preparation and filing, and the record-keeping that has to sit behind them. Done on time, with the supporting documentation organised so that an assessment years later is an inconvenience rather than a crisis.
- 02
Tax Planning
Structuring transactions and operations so the tax outcome is understood before it is committed to, not discovered afterwards. This includes qualifying for available reliefs and incentives where your business genuinely meets the substance requirements attached to them.
- 03
Tax Audit
Independent review of your tax positions and filings to find exposure before the authority does, and to establish whether the positions you have taken can be supported if they are examined.
- 04
Tax Assessments & Appeals
Responding to assessment queries, preparing the technical case, and representing you before the tax authorities. Where an assessment is wrong, the response has to be evidenced and argued rather than simply disputed.
- 05
Transfer Pricing
Pricing and documenting transactions between related entities so they stand up to scrutiny. Relevant to any group moving goods, services, financing or intellectual property across entity or border lines.
- 06
Excise Compliance and Returns
Registration, classification, return preparation and filing for excisable goods, together with the stock and movement records the regime requires.
- 07
Value Added Tax
VAT registration, impact studies, return filing, and the treatment decisions that cause most disputes, place of supply, exemption and zero-rating, input recovery, and the ten-year invoice retention obligation under Article 70 of the VAT Law.
Tax in Oman is changing faster now than at any point in its history. Mandatory e-invoicing is rolling out through 2027, the GCC’s first Personal Income Tax arrives in 2028, and a domestic minimum top-up tax already applies to large multinational groups.
The firms that will handle this well are the ones that start early. Our tax practice is built around getting ahead of each requirement, establishing what applies to you, what has to change in your systems and records, and by when.
Answers
Taxation questions, answered
When does e-invoicing become mandatory in Oman?
Oman's national e-invoicing system, Fawtara, is being introduced in three phases. Phase 1 began in August 2026 with roughly 100 to 150 of the largest VAT-registered taxpayers, individually notified by the Oman Tax Authority. Phase 2 extends to all other large taxpayers in February 2027. Phase 3 extends to all remaining VAT-registered businesses, including SMEs, in August 2027. The Tax Authority publishes a self-check tool where you can enter your VAT identification number to see which phase applies to you.
Will individuals pay income tax in Oman?
Yes, from 1 January 2028. Royal Decree No. 56/2025 introduces a Personal Income Tax, the first in the GCC, at a flat 5% on annual gross income above OMR 42,000. It applies to Omani nationals and expatriates, with different rules by residency, and includes deductions for education, healthcare, primary housing and zakat or donations. The Tax Authority estimates around 1% of the population will be liable.
What is the corporate income tax rate in Oman?
The standard rate is 15% for most businesses. Concessions exist for qualifying small and medium enterprises under separate thresholds, and businesses in Special Economic Zones and Free Zones may access a 0% holiday where they meet Economic Substance requirements, including Omanisation quotas. We will confirm the rate and any relief that applies to your specific circumstances rather than quote a general figure.
How long must we keep tax invoices in Oman?
Ten years generally under Article 70 of the VAT Law, five years within the system and five in electronic archive. Invoices relating to real estate must be retained for fifteen years.
Related insights
Reading on taxation
Oman's Domestic Minimum Top-Up Tax: Pillar Two Explained
Oman applies a 15% minimum effective tax rate to multinational groups above EUR 750 million from 2025. What the DMTT and Income Inclusion Rule mean.
Read articleFawtara E-Invoicing in Oman: Is Your Business Ready?
Oman's mandatory e-invoicing system rolls out in three phases to August 2027. Who is affected, when, and what to do before your phase begins.
Read articleOman's Personal Income Tax: What Changes in 2028
Oman becomes the first GCC country to introduce personal income tax, effective 1 January 2028 at 5% above OMR 42,000. Who it affects and what to plan.
Read article