Free invoice generator and tax tools for Oman

A small business in Oman meets four main taxes, and the Oman Tax Authority (OTA) collects all of them through the Tax Portal. Income tax falls on the profit of companies and Omani sole proprietorships, at 15% of net taxable income, or 3% for a small enterprise that meets the OTA's tests on registered capital, annual gross income and headcount (OTA Tax Rates page; Income Tax Law, Art. 159 bis 15). Value added tax is charged at 5%, and the OTA also levies a 10% withholding tax on payments to non-residents for services, interest or royalties, which the Omani payer deducts and pays over.

Excise tax applies once, at import or local production, to a short list of goods: 100% on tobacco, energy drinks, electronic smoking devices and vaping liquids, and 50% on soft drinks. Payroll is outside the OTA. Social insurance contributions go to the Social Protection Fund, which is covered on the payslip page.

The most recent reform is the Personal Income Tax Law, Royal Decree 56/2025, which for the first time taxes high individual incomes in Oman and is due to apply from 1 January 2028. Before then, the Fawtara e-invoicing programme is the change a small business will meet first, with its compulsory dates in 2027.