Oman

WHY CHOOSE OMAN

Like most Arab states in the Gulf, the taxation system is somewhat similar. The Omani tax regime has been considered to be both reasonable and pragmatic in its dealing with taxpayers. The tax system has undergone important changes reflecting the government policy of opening up the economy to foreign investment, and more changes are forthcoming. By and large, taxation is moderate because many of the government's revenues are oil revenues. Therefore, Oman levies no personal income tax, estate tax or gift tax. All entities, both foreign and locally owned, are taxable in Oman. This effort to stimulate foreign international investment has worked, more money is being invested in countries such as Oman due to their attractive tax structures. There is, however, company tax to be paid. The most important tax in Oman is the tax on business income, which is based upon the Corporate Income Tax Law of 1981 and subsequent Royal and Ministerial Decrees. Taxable entities are entities that have a permanent establishment in the country so that any entity that has personnel present in Oman is taxed. Taxable income includes business profit, interest, royalties and capital gains, and is computed on the net income arising in Oman or deemed to have risen in Oman after deducting all ordinary expenses, such as expenditure incurred in producing the gross revenue, bad debts, auditors' fees, depreciation, head office expenses, sponsorship fees and certain donations. Losses may be carried forward for up to five years. Although this absolute Islamic Monarchy is very strict and stringent in some respects, it is evident that they wish to reform foreign international policy. There has been some impressive progress in the establishment of foreign enterprises here, even though there must be an Omani national tied into the business in various matters.