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Branch of a foreign company and audit

Does our Oman branch need its own audited accounts?

The situation

Branches are taxed at 15 percent and file the annual return with audited accounts.

The law

  • Income Tax Law (accounts with the return): Return with audited accounts signed by an auditor registered in Oman, under IFRS
  • Income Tax Law, Royal Decree 28/2009: 15 percent corporate income tax on taxable income; 55 percent on petroleum sales

What it means for you

The branch needs Oman specific accounts showing its own income and costs, audited by an Oman registered auditor. Head office allocations must be supported and at arm's length.

What to do

  1. Keep separate branch books.
  2. Support head office charges.
  3. Engage an Oman auditor.
  4. File with the return.

We can do this for youStatutory audit and IFRS accounts for the tax return: OMR 900

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