Small company 3 percent regime: eligibility test and simplified return
We test all the small company conditions every year, prepare the cash basis income statement, and file the simplified 3 percent return within three months, so you keep the lower rate safely.
OMR 250Yearly
For: Small Omani companies and sole establishments that meet all the RD 9/2017 tests: capital up to OMR 50,000, gross income up to OMR 100,000, average staff up to 15, and not in excluded activities.
What we need from you
Paid up capital
Test: up to OMR 50,000
Gross income for the year
Test: up to OMR 100,000
Monthly headcount
Test: average up to 15
Business activities
Excluded activities lose the regime
Cash book and bank statements
Cash basis income statement
Tax card
Filing
What we discuss
Did gross income go above OMR 100,000 this year?
Then 15 percent applies
Did average staff exceed 15?
Then 15 percent applies
Is any activity excluded, such as banking, insurance, oil and gas?
Excluded
Did you raise capital?
Capital test
What we file
Run the eligibility test
Gross income OMR 90,000, net profit OMR 30,000: tax 3 percent = OMR 900. At 15 percent it would be OMR 4,500
File the simplified return
What you get
Eligibility note and filed return
Growth warning if near limits
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 Source
- Income Tax Law (small company return): Simplified return with a cash basis income statement within three months of year end; audited accounts relaxed Source
- Income Tax Law (penalties): Late return fine OMR 100 to 2,000; late payment 1 percent per month; under declaration fine 1 to 25 percent of the difference Source
- Income Tax Law (tax card): All taxpayers must hold a tax card; number shown on contracts, invoices and tax letters Source
Questions people ask
- Small company 3 percent conditions
- Gross income just over OMR 100,000
- Hiring the sixteenth employee
- Small company return deadline
- Audited accounts for small companies
- Excluded activities
- Foreign owned company and the 3 percent rate
- Worked example of small company tax
- Raising capital above OMR 50,000
- Tax card for small companies
Contact us to book
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