Foreign owned company and the 3 percent rate

The situation

RD 9/2017 describes the regime for Omani companies and sole establishments meeting the size tests.

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
• Foreign Capital Investment Law, Royal Decree 50/2019: Allows up to 100 percent foreign ownership outside restricted activities

What it means for you

The regime is framed for Omani entities, and practice on foreign owned companies should be confirmed with the Tax Authority. Healy states foreign owned entities pay 15 percent. Plan on 15 percent unless confirmed otherwise.

What to do

1. Ask the Tax Authority about eligibility.
2. Plan on 15 percent meanwhile.
3. Keep the answer on file.
4. Recheck if ownership changes.

Related

• Small company return deadline
• Raising capital above OMR 50,000
• Gross income just over OMR 100,000
• Hiring the sixteenth employee
• Tax card for small companies
• Small company 3 percent conditions