Training fees from abroad
We paid a foreign firm for staff training. Is WHT due?
The situation
Training is listed as an exception to management fee WHT.
The law
- Income Tax Law (withholding tax on non-residents): 10 percent WHT on royalties, technical service fees and management fees paid to non-residents; dividend and interest WHT suspended indefinitely from January 2023
What it means for you
Pure training fees generally fall outside the management fee WHT. If the contract also includes technical services, split the fee and withhold on that part.
What to do
- Read the contract scope.
- Split mixed fees.
- Withhold on technical parts.
- Keep records.
We can do this for youWithholding tax on royalties, technical and management fees to non-residents: OMR 75