Doing business in Oman

Oman's legal system is based on civil law, with Sharia as a source of legislation under the Basic Statute of the State. Laws are issued by Royal Decree. The Ministry of Commerce, Industry and Investment Promotion registers companies and licenses foreign investment, the Oman Tax Authority administers income tax, the Central Bank of Oman supervises banks, the Ministry of Labour regulates employment and the Public Authority for Special Economic Zones and Free Zones runs the economic zones. Oman is a member of the GCC customs union.

Key facts

Corporate income tax

15% standard (as at mid-2026)

VAT

5% standard since 16 April 2021

Main entity form

Limited liability company or one person company

New York Convention

Party

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2 statements on rates, thresholds or deadlines are held back until they are checked against an official source.

Companies are formed under the 2019 Commercial Companies Law and registered with the Ministry of Commerce, Industry and Investment Promotion. Special economic zones and free zones offer an alternative base.

Key facts

• The former foreign investor minimum capital no longer applies, though regulated sectors set their own capital rules.

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• An LLC or one person company under the 2019 Commercial Companies Law is the usual vehicle.

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Who handles this in OmanCorporate & Entity ServicesLegal & ContractingRisk, Compliance & Financial Integrity

Oman levies income tax on companies at a standard rate of 15%, with 3% for qualifying small businesses and 55% on petroleum income. VAT has applied at 5% since April 2021. Withholding tax of 10% applies to royalties, management and service fees paid abroad, while withholding on dividends and interest is suspended. An income inclusion rule for large multinational groups applies from 2025, and a 5% personal income tax on high earners starts in 2028.

Key facts

• Corporate income tax is 15% as standard, with 3% for qualifying small businesses and 55% on petroleum income.

• VAT is 5% since April 2021; income tax is administered by the Oman Tax Authority.

• Royalties, software, research and development, management and service fees paid abroad bear 10% withholding unless reduced by treaty; withholding on dividends and interest is suspended.

• Omani parent entities of large multinational groups are subject to an income inclusion rule from 2025; whether a domestic minimum top-up tax will follow was not indicated when checked.

• A 5% personal income tax on income above OMR 42,000 applies from 2028, which matters for senior staff packages.

Who handles this in OmanTax & International StructuringAccounting, Reporting & Statutory ComplianceAudit & Assurance

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4 statements on rates, thresholds or deadlines are held back until they are checked against an official source.

Key facts

• Social security contributions total 22.5% of pay for Omani employees and 3% (employer only) for non-Omani employees.

Who handles this in OmanEmployment, Payroll & MobilityLegal & Contracting

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1 statement on rates, thresholds or deadlines is held back until it is checked against an official source.

Special economic zones and free zones, including Duqm, Sohar and Salalah, offer incentives under the Public Authority for Special Economic Zones and Free Zones. Foreign property ownership is allowed mainly in integrated tourism complexes.

Key facts

• Duqm, Sohar, Salalah and other zones administered by OPAZ offer zone-specific incentives.

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• Foreigners can own property mainly within integrated tourism complexes.

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• Bids for state and energy-sector contracts are assessed partly on in-country value.

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Who handles this in OmanGovernment & Regulatory AffairsCommercial Intelligence & Market Research

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2 statements on rates, thresholds or deadlines are held back until they are checked against an official source.

The Omani rial is pegged to the US dollar and there are no exchange controls, so profits and capital can be repatriated freely. The Central Bank of Oman regulates conventional and Islamic banks. Banks apply customer due diligence under the 2016 anti-money laundering law.

Key facts

• There are no exchange controls on repatriating profits or capital.

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• Expect beneficial ownership checks at account opening under the 2016 anti-money laundering law.

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Who handles this in OmanBanking & Capital AccessPayments, Foreign Exchange & SettlementRisk, Compliance & Financial Integrity

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Oman is a WTO member and part of the GCC customs union. It has a bilateral free trade agreement with the United States. Customs clearance is handled through a national electronic single window.

Key facts

• Most imports from outside the GCC bear customs duty of 5% of CIF value unless a free trade agreement applies.

• US-origin goods can benefit from the bilateral free trade agreement in force since 2009.

• Customs declarations go through the Bayan system run by the Royal Oman Police customs directorate.

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• GCC agreements with EFTA and Singapore extend further preferences.

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Who handles this in OmanTrade, Customs & Supply ChainRisk, Compliance & Financial Integrity

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4 statements on rates, thresholds or deadlines are held back until they are checked against an official source.

Who handles this in OmanTechnology, Data & CyberLegal & Contracting

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Patents and designs are protected under the Industrial Property Rights Law and trade marks under the GCC Trademark Law, with the National Intellectual Property Office as the national office. Oman is a member of the Madrid Protocol, the Patent Cooperation Treaty and the Paris and Berne Conventions.

Key facts

• Trade marks can be filed nationally or by designating Oman in a Madrid application.

• Patents are obtained nationally or through the PCT, since the GCC Patent Office no longer accepts filings.

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• TRIPS standards apply through WTO membership.

Who handles this in OmanIntellectual Property & Brand ProtectionLegal & Contracting

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Oman's competition law requires approval of economic concentrations that may lead to dominance. Listed company transactions are regulated by the Financial Services Authority, with shares traded on the Muscat Stock Exchange. A 2019 bankruptcy law introduced restructuring and preventive composition procedures.

Key facts

• Deals that may create dominance need competition approval before closing.

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• Listed company deals fall under capital markets takeover rules and the Muscat Stock Exchange.

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• The 2019 Bankruptcy Law offers restructuring and preventive composition before liquidation.

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Who handles this in OmanTransactions & DealsGovernment & Regulatory AffairsLegal & Contracting

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Bribery is a criminal offence under Oman's Penal Code, and Oman is a party to the UN Convention against Corruption. Anti-money laundering obligations are set by the 2016 law, with reports to the National Centre for Financial Information. Listed companies follow a corporate governance code issued by the capital markets regulator.

Key facts

• Bribery is a crime under the Penal Code and Oman is party to the UN Convention against Corruption.

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• Designated businesses must report suspicious transactions to the National Centre for Financial Information.

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• Listed companies must comply with the corporate governance code.

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Who handles this in OmanRisk, Compliance & Financial IntegrityInsurance & Risk Transfer

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Oman's courts comprise primary courts, courts of appeal and the Supreme Court, with proceedings in Arabic. Arbitration is governed by 1997 legislation based on the UNCITRAL Model Law, and Oman has been a party to the New York Convention since 1999. Foreign judgments can be enforced subject to reciprocity and other conditions.

Key facts

• Court proceedings are in Arabic, so contracts and evidence may need translation.

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• Arbitration is governed by a Model Law-based statute, and foreign awards are enforceable under the New York Convention.

• Institutional arbitration is available locally through the Oman Commercial Arbitration Centre.

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• Foreign judgments can be enforced where reciprocity and statutory conditions are met.

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Who handles this in OmanDisputes & ResolutionLegal & Contracting