TaxSavvyOM

WHT rate on payments to foreign firms

What WHT rate applies when we pay a foreign company from Oman?

The situation

Oman applies 10 percent WHT on royalties, technical service fees and management fees paid to non-residents.

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

On a technical support fee of OMR 5,000 to a Dubai firm, withhold OMR 500 and pay OMR 4,500, unless a treaty gives a lower rate. Technical service fees are caught regardless of where the work is done.

What to do

  1. Classify the payment.
  2. Check any treaty.
  3. Withhold 10 percent.
  4. File and pay on TMS.

We can do this for youWithholding tax on royalties, technical and management fees to non-residents: OMR 75

Related