The Sultanate of Oman doesn’t levy any duty on personal income, including income from capital earnings, wealth, death, or property. still, the Personal Income tax governance is being estimated by the government following its addition to the 2020- 2024 Medium Term Financial Plan. Presently, non-resident individuals would be liable to income duty at the rate of 15 percent if they carry on marketable, artificial, or professional conditioning in Oman. Further, the actuality of a representative of a non-resident organization in relation to a business or a contract of the non-resident entity may lead to a taxable presence of the non-resident for income duty purposes. Non-residents including individuals could be subject to a withholding duty at the rate of 10 percent on a gross base if specified payments representing income are realized in Oman by them, which isn’t attributable to the carrying on conditioning in Oman through a permanent establishment (PE). Tax convention relief, if any. There are no foreign exchange restrictions or impositions. The formal currency of Oman is the Omani rial (OMR) and the exchange rate is USD= OMR0.384.
Occupancy rules
From a levy perspective, an individual shall be a tax occupant if they stay for 183 days or further continuously or intermittently during the applicable levy period.
From a visa perspective, individuals visiting Oman on short-term assignments or business meetings consider providing a Business Visa, which is granted for a period of 21 days and needs to be renewed later. For medium or long-term assignments i.e. in the nature of employment or work, labour clearance and the applicable work visa,
Payroll considerations
Oman doesn’t have PIT. operation of withholding duty or income duty, subject to duty convention relief will need to be assessed considering the conditioning of the existence in Oman and the nature of income. Social security contributions aren’t applicable for non-GCC citizens working in Oman.
Additional taxes and levies
Social security duty
Social security contributions aren’t applicable for non-GCC citizens working in Oman.
Job security fund
Job Security Fund has been established to support Omanis whose services have been terminated and those looking for jobs. Non-Omanis aren’t entitled to any benefit from the Fund. Specified contributions for employers and Omani workers are handed as per the regulations governing the Fund.
Sales tax
Oman introduced vat at a standard rate of 5 percent effective in a phased manner from 16th April 2021. The Oman vat legislation provides for immunity, zero-standing. The Oman vat legislation also provides for special treatment for inventories in special zones and customs dormancy. Details of this immunity, dormancy, and zero-standing along with the qualifying conditions are handed in the Oman vat Law (Royal DecreeNo. 121 of 2020) and the Executive Regulations (DecisionNo.53/2021).
Extra taxes
The GCC has a common customs duty governance that imposes a flat 5 percent customs duty on most goods entering the GCC. particular goods brought into the country/ authorities by the citizens abiding abroad or the non-natives coming for the first time for hearthstone in the country/ authorities are pure from customs duties, subject to the specified conditions and controls. Oman enforced the Excise Tax Law with effect on 15th June 2019. Firstly, an excise duty was assessed on carbonated drinks at 50 percent and alcohol products, energy drinks, pork products, and tobacco products at 100 percent. The Ministry of Finance later verified a temporary reduction in the rate of excise duty on alcohol to 50 percent. The Tax Authority has discontinued this temporary reduction and regressed to the original excise duty rate of 100 percent with effect from 1st July 2020. The Tax Authority has extended the tax of excise duty to sweet drinks with effect from 1st October 2020. The Tax Authority issued a Decision on 16th June 2020 to make the necessary legislative changes to enable the implementation of excise duty on sweet drinks.
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