How dividend tax works in Oman
Oman’s Income Tax Law lists dividends and interest among payments that can attract 10% withholding tax when paid to a non-resident without a permanent establishment. A Royal Directive announced in 2023 suspended withholding on dividends and interest paid to non-resident investors, so the effective current rate is generally 0% while that suspension remains in force.
Dividends received by an Omani company or establishment from an Omani company are exempt under the Income Tax Law. A company receiving foreign dividends needs a separate source-country, foreign-tax-credit and taxable-income analysis.
From 1 January 2028, the PIT law applies a 5% rate to taxable income when a natural person’s total income exceeds OMR 42,000. The future treatment of dividend income should be checked against the enacted PIT rules and executive regulations; individual shareholders should not confuse company-level withholding with their future personal assessment.
Tax rates at a glance
- Current dividend WHT in practice
- 0%Suspended
- Statutory dividend WHT
- 10%
- Dividends received from Omani companies
- Exempt
- Future personal income-tax rate
- 5% from 2028
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Holding companiesFoundersRegional investorsFamily officesListed-company shareholders
Watch out for
- The 0% current result depends on the dividend-and-interest withholding suspension continuing to apply. The statute and the Tax Authority portal still show the underlying 10% category, so payer practice and current directives should be checked before distribution.
- A source country can withhold tax before a dividend reaches Oman. Oman’s treaty network may reduce that foreign withholding, but beneficial ownership, documentation and the particular treaty article matter.
- Dividends are not the same as company profit tax. The distributing company may already have paid 15% corporate tax, and a shareholder’s residence country may tax the distribution.
- From 2028, high-income natural persons need to review how dividend income is counted in total income and how the PIT law’s exemptions and deductions operate.
Frequently asked questions
Does Oman tax dividends?
Oman’s statutory law lists 10% withholding on dividends paid to certain non-residents, but a Royal Directive suspended withholding on dividends and interest paid to non-resident investors. Omani-company dividends received by an Omani company or establishment are exempt.
Is dividend withholding tax in Oman 0% or 10%?
The statute contains a 10% category, while the current practical position is generally 0% because the dividend-and-interest withholding suspension remains in force. Treaty, payer and future-law changes should be checked for the specific payment.
Will Oman tax dividends from 2028?
The 2025 PIT law introduces a 5% tax on taxable income above the OMR 42,000 total-income threshold from 2028. The exact treatment of dividend income should be confirmed against the executive regulations and the taxpayer’s residence and source facts.