How corporate tax works in Oman
Oman’s standard corporate income-tax rate is 15% of taxable income for Omani companies, establishments and permanent establishments. Taxable income is computed after allowable expenses, losses, exemptions and the rules in the Income Tax Law.
A qualifying small establishment can be taxed at 3% if it meets the statutory conditions, including registered capital not exceeding OMR 60,000, annual gross income not exceeding OMR 150,000, no more than 25 workers and no professional activity. The conditions and any available exemption must be tested rather than assumed from a small-business label.
Petroleum exploration taxpayers face a 55% rate on income from petroleum sales under the Income Tax Law, alongside contractual royalties and other government participation. Oman also enacted Pillar Two rules from 1 January 2025 for multinational groups meeting the EUR 750 million consolidated-revenue test in at least two of the preceding four years.
Tax rates at a glance
- Standard corporate tax
- 15%Standard
- Qualifying small establishment
- 3%
- Petroleum exploration income
- 55%
- Pillar Two effective minimum
- 15%
- MNE revenue threshold
- EUR 750 million
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Gulf-based foundersRegional operatorsHolding companiesIndustrial businessesEnergy groups
Watch out for
- Income-tax registration is mandatory for establishments carrying on economic activity, generally within 60 days of starting activity or registering with the Ministry of Commerce. Filing and audit requirements vary between the 3% and 15% regimes.
- The 3% rate is not a general SME rate. Capital, revenue, employee, activity and ownership or management conditions can all affect eligibility, and a return may still be required even where an exemption applies.
- Pillar Two is separate from the normal 15% Oman corporate-tax calculation. In-scope groups should track the executive regulations, safe harbours, constituent-entity scope and information-return obligations.
- Corporate tax is only one layer. VAT, withholding tax on some non-resident payments, customs, excise, licence fees, payroll contributions and transfer pricing can materially change the total cost.
Frequently asked questions
What is Oman’s corporate-tax rate?
The standard rate is 15% of taxable income. Qualifying small establishments can use 3% if they meet the statutory conditions, while petroleum exploration income can be taxed at 55%.
What is the Oman small-business tax rate?
The special rate is 3%, but it is conditional. The Tax Authority lists limits of OMR 60,000 registered capital, OMR 150,000 annual gross income and 25 workers, plus an exclusion for professional activities.
Does Oman have a 15% global minimum tax?
Yes. Oman’s Royal Decree 70/2024 introduces Pillar Two top-up rules from 1 January 2025 for in-scope multinational groups meeting the EUR 750 million consolidated-revenue test in at least two of the preceding four years.