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Excluded activities

Can a consultancy or contracting company use the 3 percent rate?

The situation

Some activities are excluded from the small company regime, such as banking, insurance and oil and gas.

The law

  • Royal Decree 9/2017 amending the Income Tax Law (small company regime): 3 percent rate for Omani companies and establishments with capital up to OMR 50,000, gross income up to OMR 100,000 and on average up to 15 employees, outside excluded activities

What it means for you

Healy lists regulated activities such as oil and gas and financial institutions as excluded. Check the full list in the law before relying on 3 percent. A consultancy that meets the numeric tests may qualify if not excluded.

What to do

  1. Check your activity against the exclusion list.
  2. Confirm in writing with the Tax Authority if unsure.
  3. Plan for 15 percent if excluded.
  4. Record the decision.

We can do this for youSmall company 3 percent regime: eligibility test and simplified return: OMR 250

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