Oman Tax Guide

Oman
Tax Guide
2013
Foreword
FOREWORD
A country’s tax regime is always a key factor for any business considering moving
into new markets. What is the corporate tax rate? Are there any incentives for
overseas businesses? Are there double tax treaties in place? How will foreign source
income be taxed?
Since 1994, the PKF network of independent member firms, administered by PKF
International Limited, has produced the PKF Worldwide Tax Guide (WWTG) to provide
international businesses with the answers to these key tax questions. This handy
reference guide provides clients and professional practitioners with comprehensive
tax and business information for over 90 countries throughout the world.
As you will appreciate, the production of the WWTG is a huge team effort and I
would like to thank all tax experts within PFK member firms who gave up their time
to contribute the vital information on their country’s taxes that forms the heart of this
publication.
I hope that the combination of the WWTG and assistance from your local PKF
member firm will provide you with the advice you need to make the right decisions
for your international business.
Richard Sackin
Chairman, PKF International Tax Committee
Eisner Amper LLP
[email protected]
PKF Worldwide Tax Guide 2013
I
IMPORTANT DISCLAIMER
Disclaimer
This publication should not be regarded as offering a complete explanation of the
taxation matters that are contained within this publication.
This publication has been sold or distributed on the express terms and understanding
that the publishers and the authors are not responsible for the results of any actions
which are undertaken on the basis of the information which is contained within this
publication, nor for any error in, or omission from, this publication.
The publishers and the authors expressly disclaim all and any liability and
responsibility to any person, entity or corporation who acts or fails to act as a
consequence of any reliance upon the whole or any part of the contents of this
publication.
Accordingly no person, entity or corporation should act or rely upon any matter or
information as contained or implied within this publication without first obtaining
advice from an appropriately qualified professional person or firm of advisors, and
ensuring that such advice specifically relates to their particular circumstances.
PKF International is a network of legally independent member firms administered by
PKF International Limited (PKFI). Neither PKFI nor the member firms of the network
generally accept any responsibility or liability for the actions or inactions on the part
of any individual member firm or firms.
II
PKF Worldwide Tax Guide 2013
PREFACE
The PKF Worldwide Tax Guide 2013 (WWTG) is an annual publication that provides an
overview of the taxation and business regulation regimes of the world’s most significant
trading countries. In compiling this publication, member firms of the PKF network have
based their summaries on information current on 1 January 2013, while also noting
imminent changes where necessary.
Preface
On a country-by-country basis, each summary addresses the major taxes applicable to
business; how taxable income is determined; sundry other related taxation and business
issues; and the country’s personal tax regime. The final section of each country summary
sets out the Double Tax Treaty and Non-Treaty rates of tax withholding relating to the
payment of dividends, interest, royalties and other related payments.
While the WWTG should not to be regarded as offering a complete explanation of the
taxation issues in each country, we hope readers will use the publication as their first
point of reference and then use the services of their local PKF member firm to provide
specific information and advice.
In addition to the printed version of the WWTG, individual country taxation guides are
available in PDF format which can be downloaded from the PKF website at www.pkf.com
PKF INTERNATIONAL LIMITED
MAY 2013
©PKF INTERNATIONAL LIMITED
ALL RIGHTS RESERVED
USE APPROVED WITH ATTRIBUTION
PKF Worldwide Tax Guide 2013
III
ABOUT PKF INTERNATIONAL LIMITED
PKF International Limited (PKFI) administers the PKF network of legally independent
member firms. There are around 300 member firms and correspondents in 440
locations in around 125 countries providing accounting and business advisory services.
PKFI member firms employ around 2,270 partners and more than 22,000 staff.
PKFI is the 11th largest global accountancy network and its member firms have $2.68
billion aggregate fee income (year end June 2012). The network is a member of the
Forum of Firms, an organisation dedicated to consistent and high quality standards of
financial reporting and auditing practices worldwide.
Services provided by member firms include:
Introduction
Assurance & Advisory
Insolvency – Corporate & Personal
Financial Planning/Wealth management
Taxation
Corporate Finance
Forensic Accounting
Management Consultancy
Hotel Consultancy
IT Consultancy
PKF member firms are organised into five geographical regions covering Africa; Latin
America; Asia Pacific; Europe, the Middle East & India (EMEI); and North America &
the Caribbean. Each region elects representatives to the board of PKF International
Limited which administers the network. While the member firms remain separate and
independent, international tax, corporate finance, professional standards, audit, hotel
consultancy and business development committees work together to improve quality
standards, develop initiatives and share knowledge and best practice cross the network.
Please visit www.pkf.com for more information.
IV
PKF Worldwide Tax Guide 2013
STRUCTURE OF COUNTRY DESCRIPTIONS
A. TAXES PAYABLE
FEDERAL TAXES AND LEVIES
COMPANY TAX
CAPITAL GAINS TAX
BRANCH PROFITS TAX
SALES TAX/VALUE ADDED TAX
FRINGE BENEFITS TAX
LOCAL TAXES
OTHER TAXES
B. DETERMINATION OF TAXABLE INCOME
CAPITAL ALLOWANCES
DEPRECIATION
STOCK/INVENTORY
CAPITAL GAINS AND LOSSES
DIVIDENDS
INTEREST DEDUCTIONS
LOSSES
FOREIGN SOURCED INCOME
INCENTIVES
Structure
C. FOREIGN TAX RELIEF
D. CORPORATE GROUPS
E. RELATED PARTY TRANSACTIONS
F. WITHHOLDING TAX
G. EXCHANGE CONTROL
H. PERSONAL TAX
I. TREATY AND NON-TREATY WITHHOLDING TAX RATES
PKF Worldwide Tax Guide 2013
V
INTERNATIONAL TIME ZONES
AT 12 NOON, GREENWICH MEAN TIME, THE STANDARD TIME
ELSEWHERE IS:
A
Algeria . . . . . . . . . . . . . . . . . . . . 1 pm
Angola . . . . . . . . . . . . . . . . . . . . 1 pm
Argentina . . . . . . . . . . . . . . . . . . 9 am
Australia Melbourne. . . . . . . . . . . . . 10 pm
Sydney . . . . . . . . . . . . . . . 10 pm
Adelaide . . . . . . . . . . . . . 9.30 pm
Perth. . . . . . . . . . . . . . . . . . 8 pm
Austria . . . . . . . . . . . . . . . . . . . . 1 pm
Time Zones
B
Bahamas. . . . . . . . . . . . . . . . . . . 7 am
Bahrain. . . . . . . . . . . . . . . . . . . . 3 pm
Belgium. . . . . . . . . . . . . . . . . . . . 1 pm
Belize. . . . . . . . . . . . . . . . . . . . . 6 am
Bermuda. . . . . . . . . . . . . . . . . . . 8 am
Brazil. . . . . . . . . . . . . . . . . . . . . . 7 am
British Virgin Islands. . . . . . . . . . . 8 am
C
Canada Toronto. . . . . . . . . . . . . . . . 7 am
Winnipeg. . . . . . . . . . . . . . . 6 am
Calgary. . . . . . . . . . . . . . . . 5 am
Vancouver. . . . . . . . . . . . . . 4 am
Cayman Islands. . . . . . . . . . . . . . 7 am
Chile. . . . . . . . . . . . . . . . . . . . . . 8 am
China - Beijing. . . . . . . . . . . . . . 10 pm
Colombia. . . . . . . . . . . . . . . . . . . 7 am
Cyprus . . . . . . . . . . . . . . . . . . . . 2 pm
Czech Republic. . . . . . . . . . . . . . 1 pm
D
Denmark. . . . . . . . . . . . . . . . . . . 1 pm
Dominican Republic. . . . . . . . . . . 7 am
E
Ecuador. . . . . . . . . . . . . . . . . . . . 7 am
Egypt . . . . . . . . . . . . . . . . . . . . . 2 pm
El Salvador . . . . . . . . . . . . . . . . . 6 am
Estonia. . . . . . . . . . . . . . . . . . . . 2 pm
F
Fiji . . . . . . . . . . . . . . . . . 12 midnight
Finland. . . . . . . . . . . . . . . . . . . . 2 pm
France. . . . . . . . . . . . . . . . . . . . .1 pm
G
Gambia (The). . . . . . . . . . . . . . 12 noon
Germany. . . . . . . . . . . . . . . . . . . 1 pm
Ghana. . . . . . . . . . . . . . . . . . . 12 noon
Greece . . . . . . . . . . . . . . . . . . . . 2 pm
Grenada . . . . . . . . . . . . . . . . . . . 8 am
Guatemala. . . . . . . . . . . . . . . . . . 6 am
VI
Guernsey. . . . . . . . . . . . . . . . . 12 noon
Guyana. . . . . . . . . . . . . . . . . . . . 7 am
H
Hong Kong . . . . . . . . . . . . . . . . . 8 pm
Hungary . . . . . . . . . . . . . . . . . . . 1 pm
I
India. . . . . . . . . . . . . . . . . . . . 5.30 pm
Indonesia. . . . . . . . . . . . . . . . . . .7 pm
Ireland. . . . . . . . . . . . . . . . . . . 12 noon
Isle of Man . . . . . . . . . . . . . . . 12 noon
Israel. . . . . . . . . . . . . . . . . . . . . . 2 pm
Italy . . . . . . . . . . . . . . . . . . . . . . 1 pm
J
Jamaica . . . . . . . . . . . . . . . . . . . 7 am
Japan. . . . . . . . . . . . . . . . . . . . . 9 pm
Jordan . . . . . . . . . . . . . . . . . . . . 2 pm
K
Kenya. . . . . . . . . . . . . . . . . . . . . 3 pm
L
Latvia. . . . . . . . . . . . . . . . . . . . . 2 pm
Lebanon. . . . . . . . . . . . . . . . . . . 2 pm
Luxembourg . . . . . . . . . . . . . . . . 1 pm
M
Malaysia. . . . . . . . . . . . . . . . . . . 8 pm
Malta . . . . . . . . . . . . . . . . . . . . . 1 pm
Mexico . . . . . . . . . . . . . . . . . . . . 6 am
Morocco. . . . . . . . . . . . . . . . . 12 noon
N
Namibia. . . . . . . . . . . . . . . . . . . .2 pm
Netherlands (The). . . . . . . . . . . . . 1 pm
New Zealand. . . . . . . . . . . 12 midnight
Nigeria . . . . . . . . . . . . . . . . . . . . 1 pm
Norway. . . . . . . . . . . . . . . . . . . . 1 pm
O
Oman. . . . . . . . . . . . . . . . . . . . . 4 pm
P
Panama. . . . . . . . . . . . . . . . . . . . 7 am
Papua New Guinea. . . . . . . . . . .10 pm
Peru. . . . . . . . . . . . . . . . . . . . . . 7 am
Philippines. . . . . . . . . . . . . . . . . . 8 pm
Poland. . . . . . . . . . . . . . . . . . . . .1 pm
Portugal . . . . . . . . . . . . . . . . . . . 1 pm
Q
Qatar. . . . . . . . . . . . . . . . . . . . . . 8 am
R
Romania. . . . . . . . . . . . . . . . . . . 2 pm
PKF Worldwide Tax Guide 2013
Russia Moscow . . . . . . . . . . . . . . . 3 pm
St Petersburg. . . . . . . . . . . . 3 pm
S
Singapore. . . . . . . . . . . . . . . . . . 7 pm
Slovak Republic. . . . . . . . . . . . . . 1 pm
Slovenia . . . . . . . . . . . . . . . . . . . 1 pm
South Africa. . . . . . . . . . . . . . . . . 2 pm
Spain . . . . . . . . . . . . . . . . . . . . . 1 pm
Sweden. . . . . . . . . . . . . . . . . . . . 1 pm
Switzerland. . . . . . . . . . . . . . . . . 1 pm
T
Taiwan . . . . . . . . . . . . . . . . . . . . 8 pm
Thailand . . . . . . . . . . . . . . . . . . . 8 pm
Tunisia . . . . . . . . . . . . . . . . . . 12 noon
Turkey. . . . . . . . . . . . . . . . . . . . . 2 pm
Turks and Caicos Islands . . . . . . . 7 am
Time Zones
U
Uganda. . . . . . . . . . . . . . . . . . . . 3 pm
Ukraine. . . . . . . . . . . . . . . . . . . . 2 pm
United Arab Emirates. . . . . . . . . . 4 pm
United Kingdom. . . . . . . (GMT) 12 noon
United States of America New York City. . . . . . . . . . . . 7 am
Washington, D.C.. . . . . . . . . 7 am
Chicago. . . . . . . . . . . . . . . . 6 am
Houston. . . . . . . . . . . . . . . . 6 am
Denver . . . . . . . . . . . . . . . . 5 am
Los Angeles. . . . . . . . . . . . . 4 am
San Francisco. . . . . . . . . . . 4 am
Uruguay . . . . . . . . . . . . . . . . . . . 9 am
V
Venezuela. . . . . . . . . . . . . . . . . . 8 am
Z
Zimbabwe. . . . . . . . . . . . . . . . . . 2 pm
PKF Worldwide Tax Guide 2013
VII
Oman
OMAN
Currency:Rial Omani
(RO)
Dial Code To: 968
Member Firm:
Name:
City:
Muscat
Percy Bhaya
Dial Code Out: 00
Contact Information:
24563 195
[email protected]
A. TAXES PAYABLE
FEDERAL TAXES AND LEVIES
COMPANY TAX
For Tax year ending up to 31 December 2009, net taxable assessed income is
subject to the following tax rate structure.
(1A) Entities wholly owned by Omanis or where Omani shareholding in the capital of
a company is 51% or more (revised from tax year 2001 to entities wholly owned
by Omanis and mixed ownership companies of which 70% or less than 70%
capital is owned by foreigners and further revised to 100% foreign ownership
for all Omani establishments from the year 2010):
• the first RO 30,000/of the taxable income is exempt
• taxable income over RO 30,000/ is taxed at a flat rate of 12%
• a tax rate of 12% will be applicable to General Joint Stock Companies
irrespective of the extent of foreign shareholding
• income earned by joint investment accounts/mutual funds registered in
Oman under the Capital Market Laws, or established overseas for dealing
in shares and securities listed on Muscat Securities Market is exempted
from tax
• any establishment registered in Oman by GCC citizens irrespective of the
fact whether they carry out permitted activity or not and irrespective of
their percentage of capital contribution will have the applicable tax rate as
specified above for all Omani establishments.
For Tax year ending after 31 December 2009
(1B) The same tax rate as mentioned above continues:
• First RO 30,000 of taxable income of the company - Tax free.
• Balance taxable income over RO 30,000 - Taxed at a flat rate of 12%.
For Tax year ending up to 31 December 2009
(2A) The applicable tax rates for a branch of a foreign company from tax year 2001
is as follows:
Taxable/assessed income (RO)
Tax rate
0 to 5,000
0%
5,000 to 18,000
5%
18,000 to 35,000
10%
35,000 to 55,000
15%
55,000 to 75,000
20%
75,000 to 100,000
25%
Over 100,000
30%
The entire taxable income is taxed at the percentage rate corresponding to the
income bracket into which the total income falls. The company is, however, subject
to a relief where the taxable profits fall marginally into a higher bracket. In this case,
the tax payable is calculated as above and is then compared with the sum of the
tax payable on the highest limit of the bracket just below that into which the taxable
income falls and the amount of the marginal income in excess of the aforesaid limit.
The lower of these two amounts is the tax payable.
For Tax year ending after 31 December 2009
(2B) Branches of foreign companies or income earned by a PE in Oman of a foreign
company will be taxed as under:
PKF Worldwide Tax Guide 2013
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Oman
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•
First RO 30,000 of taxable income of the company - Tax free.
Balance taxable income over RO 30,000 - Taxed at a flat rate of 12%.
PETROLEUM COMPANIES
Special provisions are applicable to taxation of income derived from sale of
petroleum. The tax rate is 55% since 1970. Oman LNG Company LLC is subject to a
special tax rate of 15% as per provisions of Royal Decree No 95/96.
TAX EXEMPTIONS
Companies carrying out the following specified activities will be exempted from tax
only to the extent of the income arising from the specified activities:
• industry in accordance with the Law of Organising and Encouraging Industry
and Mining
• exportation of locally manufactured or processed products
• promotion of tourism which may include setting up and operation of tourist
hotels and villages with the exception of management contracts
• dairy farm products and processing of the same which may include livestock
breeding, processing or manufacture of livestock products and agricultural
industries
• fishing and fish processing
• educational institutions and private hospitals.
The exemption from tax for companies engaged in the above activities will be
operative for a period of five years effective from the date that activity or production
activity commences. The period of exemption may be further extended for a period
not exceeding five years provided that a decision is issued to that effect by the
Financial Affairs and Energy Resources Council. Companies engaged in the above
activities are allowed to indefinitely carry forward their losses (beyond the exempted
period of five years) and deduct it in subsequent years until losses are fully absorbed.
TAX YEAR
The tax year is the calendar year although a special permit can be obtained from the
Ministry of Finance for a different fiscal period.
PROVISIONAL AND ANNUAL RETURNS OF INCOME
Provisional tax is to be paid and provisional return of income is to be filed within three
months of the end of the accounting period.
Annual return and annual tax settlement is due at the end of six months following the
close of accounting period. The same should be filed along with the audited accounts.
CAPITAL GAINS TAX
Capital gains are normally regarded as part of ordinary corporate income and the
total income is taxed at applicable tax rates. With effect from 1 January 2003, profit
made on sale of securities listed on Muscat Securities Market is exempt from tax.
Also the loss, if any, will not be allowed as a deductible expense.
BRANCH PROFITS TAX
Branches of foreign companies are taxed in Oman if PE of a foreign company is
established in Oman. Allowance for allocated head office expenditure is on restricted basis.
OTHER TAXES
Consumption taxes include the following:
Rate
On annual rental of leased premises and cinema tickets
3%
Electricity bills in excess of RO 50/-
2%
Hotels and restaurant bills
5%
Municipal taxes are payable in the Muscat and Salalah municipalities. The taxes
charged in the Muscat municipality are as follows:
Rate
Hotel income
5%
Property rents
3%
Leisure and cinema income
10%
Tax on home owners using the drainage system
10%
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PKF Worldwide Tax Guide 2013
Oman
VOCATIONAL TRAINING LEVY
Ministerial Decision 84/98 specifies the vocational training levy on employers at
Private Sector at R0 100/- annually per expatriate employee. The decision is effective
from 8 March 1998.
SOCIAL SECURITY PREMIUM
Employers are required to pay a social security premium equal to 17% of the salaries of
its Omani employees. Of this amount, 6.5% is recoverable from the Omani employees.
CUSTOMS DUTIES
Customs duties are levied on certain categories of imported goods. The rates range
from 5% to 100%.
B. DETERMINATION OF TAXABLE INCOME
Taxable income is computed in accordance with the generally accepted accounting
principles applied on a consistent and regular basis. The accrual basis is generally to be
used although, in special cases, the Director of Income Tax may approve cash basis of
accounting.
As a basic rule, all expenses which are incurred wholly and exclusively for the purposes of
business and are incurred to generate the gross income of the establishment are allowed
to be deducted provided they are reasonable considering value of services received. Any
expense or cost incurred to generate income which is exempted from income tax will not
be allowed as a deductible expense.
Remuneration to working partners and owner’s family members is allowed on restricted
basis.
Certain charges have been specified as not deductible and certain charges have been
restricted to specific amounts by the tax law.
DEPRECIATION AND AMORTISATION
FOR TAX YEAR ENDING UP TO 31 DECEMBER 2009
Depreciation is deductible on the basis of straight-line method at rates prescribed below:
Assets
Rate
Permanent buildings
4%
Prefabricated buildings
15%
Bridges, platforms, pipelines, permanent way and railway lines
10%
Heavy equipment
33.33%
Vehicles
33.33%
Furnishings
33.33%
Other equipment and tools
15%
Aircraft and ships
15%
Hospital buildings and educational establishments
100%
Scientific research implements
100%
Amortisation of intangible assets is also allowed at a rate approved by the Secretary
General of Taxation Affairs.
In case of buildings used for industrial purposes (excluding buildings for housing of
employees, office and storage), the stated rates of depreciation shall be doubled.
In case of tools and equipment which are used for three shifts of work per day,
depreciation rate stated above shall be increased by a maximum of 50%. The
additional depreciation to be computed by reference to the number of days that the
tools and equipment are used for three shifts in proportion to 300 working days per
year.
FOR TAX YEAR ENDING AFTER 31 DECEMBER 2009
DEPRECIATION
Depreciation
- A major change in depreciation under the new Income Tax Decree is the
introduction of the concept of pooling of assets. According to this concept,
PKF Worldwide Tax Guide 2013
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Oman
•
•
•
all assets coming under a certain category would be depreciated by applying
depreciation rate as specified in the new Income Tax Decree on written down
value method, which would be computed as below:
Opening net written down value
Add: additions made during the year
Less: Sale proceeds during the year.
-
Consequent to above change in the depreciation methodology, there will be no
balancing charge or balancing allowance i.e. there will be no profit or loss on
sale of assets for tax computations.
-
Earlier, under old Tax Decree, depreciation was allowed on straight line method.
Now as per the new Income Tax Decree, it will be allowed on written down
value method on all assets except for depreciation on buildings, aircrafts and
ships which would continue on straight line basis. The depreciation rate on first
class building is 4% and on second class building, aircraft and ships is 15%, on
quays, jetties, pipelines, roads and railways 10%.
-
The depreciation rates have remained same for all assets, except for
depreciation rates for computers and software which is now revised from 15%
to 33%. Depreciation on tractors, cranes and other heavy machinery and plant,
self propelling machines, fixtures, fittings and furniture is now revised from
33.33% to 33%, and on drilling rigs which will now be allowed at the rate of
10%.
STOCK/INVENTORY
Oman tax regulations do not specifically establish which methods of inventory
valuation must be used, nor how inventory flows be determined. At present, any of
three methods – average, FIFO or LIFO – are deemed to represent the ‘actual cost’
required by tax rules.
Reserves and provisions for inventory shortages and obsolescence are not
acceptable as a deductible expense for tax purposes but actual losses and write
offs are allowed in the year in which they occur provided they are supported with
adequate documentation.
CAPITAL GAINS AND LOSSES
Capital gains and losses are normally regarded as part of ordinary corporate income.
DIVIDENDS
Income tax is not chargeable on dividends received by sole proprietary commercial
establishments and by companies on shares held in the capital of another company
registered in Oman.
INTEREST DEDUCTIONS
Interest paid on the bank borrowing used for business purposes is deductible.
Interest paid on loans from partners / members are allowed on restrictive basis.
LOSSES
Net operating losses can be carried forward and set off against subsequent profits for
five years. Companies for which preferential rates of taxation apply can indefinitely
carry forward their losses (beyond the exempted period of five years) and deduct it in
subsequent years until losses are fully absorbed.
C. FOREIGN TAX RELIEF
Sultanate of Oman has entered into agreements for the avoidance of double taxation
(DTA) and the prevention of avoiding income tax with France, India, Tunisia, United
Kingdom, Mauritius, Italy, Pakistan, Algeria, Lebanon, China, Yemen, South Africa,
Sudan, Seychelles, Iran, Canada, Turkey, Syria, Republic of South Korea, Singapore
Thailand, Uzbekistan, Belarus, Brunei, Netherlands, Maldova, Vietnam, Belgium,
Malaysia and Croatia.
Currently, most of the foreign airlines carrying on business through establishment in
Oman are exempted from income tax either through comprehensive DTAs or through
limited DTAs. The foreign airlines which earn income through establishment in Oman,
and which do not have comprehensive DTAs or limited DTAs, would be exempted
from tax effective from 1 January 2003 provided reciprocal tax exemption is granted
in the airline’s home country. The countries whose airlines have signed agreements
for tax relief are India, Kuwait, Jordan, Netherlands, Tanzania, Sri Lanka, Iran,
Singapore, Sweden and Switzerland.
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PKF Worldwide Tax Guide 2013
Oman
Tax credit is unilaterally allowed by certain countries, e.g. the UK, USA and Germany
in respect of tax paid by foreign business entities in Oman, on satisfaction of certain
conditions.
Income earned overseas by a PE (permanent establishment) in Oman will be taxed in
Oman. Corresponding tax credit in Oman will be given to the extent of Omani tax i.e.
12% or foreign tax paid on that income whichever is lower.
D. CORPORATE GROUPS
There are no provisions for group taxation or for off setting losses of one company
against another.
E. RELATED PARTY TRANSACTIONS
Transactions with related parties are subject to detailed scrutiny to confirm that
prices are at arm’s length and that expenses exclude element of profits in case of
transactions between Head Office and branch and 100% subsidiary companies.
F. WITHHOLDING TAX
Withholding taxes have been introduced on foreign companies which have no
permanent establishment in Oman and receive amounts for following services from
companies or permanent establishment situated in Oman.
1. Royalties
2. Consideration for research and development
3. Consideration for the use of or right to use computer software
4. Management fees.
Tax at the rate of 10% of the gross income shall be deducted at source. The
obligation to deduct this tax shall rest with the company or the permanent
establishment which pays the above amount.
G. EXCHANGE CONTROL
There are no exchange controls in any form on inward or outward investment or on
repatriation of capital or profits, either by nationals or expatriates.
H. PERSONAL TAX
Currently, there is no personal income/wealth tax in Oman.
I. TREATY WITHHOLDING TAX RATES
The following rates for royalties apply:
Royalties (%)
Treaty Countries:
Canada
10 (1)
China
10
France
0
India
10
Italy
10
Korea
8
Mauritius
0
Moldova
10
Pakistan
10
Seychelles
10
Singapore
8
South Africa
Thailand
United Kingdom
8
10
8
1Copyright royalties are not subject to withholding tax under the provisions of this treaty.
PKF Worldwide Tax Guide 2013
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