Withholding tax on royalties, technical and management fees to non-residents

We review every payment to foreign suppliers, decide if 10 percent WHT applies or a treaty lowers it, file the WHT return and pay on TMS, and give suppliers proof of tax withheld.

OMR 75Monthly

For: Oman companies, branches and government bodies that pay non-residents royalties, technical service fees, management fees and similar items.

What we need from you

List of payments to non-residents in the month
WHT base
Contracts and invoices
Classify as royalty, technical service or management fee
Tax residency certificates of suppliers
Treaty relief
Payment dates and amounts
Due date and base
Supplier PE status in Oman
WHT applies to non-residents without an Oman PE
Gross up clauses
Who bears the WHT

What we discuss

Is the payment a royalty, technical service fee or management fee?
These carry 10 percent WHT
Is it a dividend or interest?
WHT on dividends and interest has been suspended indefinitely since January 2023, with limited exceptions
Is it training, a conference or exhibition fee?
Excluded from management fee WHT
Does a tax treaty apply?
May reduce the rate
Does the contract require you to gross up?
Changes the cost

What we file

Classify and compute WHT
Technical service fee OMR 8,000 x 10 percent = OMR 800; if grossed up, OMR 8,000 / 0.9 = OMR 8,889 base, WHT OMR 889
File the WHT return and pay
Send proof of WHT to the supplier

What you get

Monthly WHT schedule and receipt
Supplier WHT confirmations

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 Source
Income Tax Law (tax card): All taxpayers must hold a tax card; number shown on contracts, invoices and tax letters Source
Royal Decree 118/2020 amending the Income Tax Law: Single return within four months of year end from 2020; tax card registration within 60 days of starting business and updates within 30 days Source

Questions people ask

Online payment in OMR is not open yet. Send us a message and an adviser for Oman confirms the scope and the fee before any work starts.