This article provides a precise breakdown of the corporate tax regime in Oman (OM) as it stands in 2025, including standard rates, regime structure, and sector-specific considerations for companies operating or planning to operate within the Sultanate.
Overview of Oman’s Corporate Tax System in 2025
Oman maintains a streamlined corporate tax regime characterized by a flat rate across most corporate entities. The tax assessment is based on the corporate structure, and the currency used for all tax transactions is the Omani Rial (OMR).
Key Features of Oman’s Corporate Tax
| Parameter | Details |
|---|---|
| Type | Flat (Across Standard Corporations) |
| Standard Rate (%) | 15% |
| Assessment Basis | Corporate |
| Currency | OMR (Omani Rial) |
There are no progressive brackets for corporate tax in Oman. The 15% rate applies as a uniform rate to company profits unless special conditions or activities mandate alternative rates or surcharges.
Surtaxes and Special Rates
While the standard corporate tax rate is 15%, certain business categories and activities in Oman are subject to additional rates or conditions as outlined below.
| Description | Rate (%) | Applies To |
|---|---|---|
| SMEs (Omani proprietorships and LLCs) | 3% | Registered capital ≤ OMR 60,000, Gross income ≤ OMR 150,000, ≤ 25 employees, Not engaged in excluded activities |
| Petroleum Income | 55% | Companies deriving income from petroleum sales (as per Exploration and Production Sharing Agreements) |
| Pillar 2 Minimum Top-Up Tax for MNEs (from 2025) | 15% | Multinational enterprise (MNE) groups subject to minimum tax under Pillar 2 |
Small and Medium Enterprise (SME) Regime
Omani proprietorships and limited liability companies (LLCs) qualifying as SMEs may benefit from a substantially reduced tax rate of 3%. To qualify, the SME must:
- Have registered capital of ≤ OMR 60,000
- Annual gross income of ≤ OMR 150,000
- Employ ≤ 25 people
- Engage only in permitted activities (certain sectors and activities are excluded)
Petroleum Sector Taxation
Income derived from the sale of petroleum is taxed at a much higher rate of 55%. This rate is specific to petroleum income as determined by Exploration and Production Sharing Agreements.
Pillar 2 Minimum Tax for MNEs
Effective from 2025, Oman implements a minimum top-up tax of 15% for multinational enterprise (MNE) groups in line with international Pillar 2 rules. This measure ensures that qualifying MNEs are taxed at an effective minimum rate, regardless of domestic tax preferences.
No Capital Gains Tax or Tiered Bracket Data
The available data does not specify separate rates or bracketed schemes for capital gains on corporate entities, nor are there minimum or maximum holding periods impacting corporate tax calculation. All company profits are generally taxed at the standard regime rate, except for the special cases outlined above.
Pro Tips for Oman’s Corporate Tax in 2025
- Review corporate eligibility for the SME regime annually to benefit from the reduced 3% rate, especially if any growth changes the company’s size or revenue thresholds.
- For energy sector ventures, ensure early consultation on tax treatment if deriving income from petroleum, as the 55% rate applies strictly to petroleum activities.
- Multinational groups should carry out detailed Pillar 2 compliance checks, as Oman’s new MNE minimum top-up tax rules are fully in effect from 2025.
- All company financial reports and tax filings should be denominated in OMR; where using other currencies, apply the Central Bank of Oman’s exchange rate for accuracy.
- Regularly monitor regulations and official updates via the Oman Tax Authority for any regime changes or filing requirements.
Key Takeaways for Corporate Taxation in Oman
Oman’s corporate tax regime offers a straightforward, flat structure, but significant differences exist for SMEs, the petroleum sector, and international groups under OECD compliance rules. Companies benefit from a clear 15% standard rate unless they fit into a special category (most notably, the 3% SME rate or petroleum-specific 55% rate). The introduction of a new minimum tax for MNEs in 2025 also marks an important compliance point for global businesses. Attention to eligibility, activity types, and regular regulatory review remain essential for tax-efficient operations in Oman.