Income Tax in Oman

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In Oman, most of the items don’t attract tax, but individuals who earn at least OMR30, 000 (US$60,000) are taxed at a flat rate of 12%, which is tax on income earned.

We provide below details of how tax is charged on income of individuals in Oman

INDIVIDUAL TAXATION

There are no personal income taxes in Oman.

INCOME TAX

Nonresidents earning trade or business income exceeding OMR30,000 (US$60,000) are taxed at a flat rate of 12%.

INCOME TAX 2016
TAXABLE INCOME, OMR (US$) TAX BASE
Up to 30,000 (US$60,000) 0%
Over 30,000 (US$60,000) 15% on all income over US$60,000

 

INCOME TAX 2015
TAXABLE INCOME, OMR (US$) TAX BASE
Up to 30,000 (US$60,000) 0%
Over 30,000 (US$60,000) 12% on all income over US$60,000

 

RENTAL INCOME
Rental income is taxed at a flat rate of 3%, payable by the landlord. Income-generating expenses are deductible from rental income only if the rental agreement is registered with the government authority.

CAPITAL GAINS
There are also no taxes levied on capital gains realized by individuals, unless it is derived from a business or professional activity.

Capital gains derived from a business or professional activity are subject to income tax at 15%.

PROPERTY TAX

There are no property taxes in Oman.

CORPORATE TAXATION

INCOME TAX
Companies earning income and capital gains are liable to corporate income tax, which is levied at progressive rates. Income-generating expenses are deductible when calculating the taxable income.

INCOME TAX 2016
TAXABLE INCOME, OMR (US$) TAX BASE
Up to 30,000 (US$60,000) 0%
Over 30,000 (US$60,000) 15% on all income over US$60,000

 

INCOME TAX 2015
TAXABLE INCOME, OMR (US$) TAX BASE
Up to 30,000 (US$60,000) 0%
Over 30,000 (US$60,000) 12% on all income over US$60,000

 

From the tax scales above, you will notice that tax on capital gains is the highest, at 15% while tax on income is zero for most of the population. This explains why real estate is blossoming in this country, simply because tax is extremely low.

Many people nowadays are not buying property in Europe but in countries like Oman where tax is low and property is cheap. For instance, a fully furnished apartment which you buy at $10,000 in Oman costs at least $50,000 in USA.

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