Taxation of international executives
Are there social security/social insurance taxes in Oman? If so, what are the rates for employers and employees?
Social security contributions are not applicable for non-GCC nationals working in Oman. This page does not discuss social security provisions as applicable to Omanis and GCC nationals and which can be requested separately.
Job security fund
Job Security Fund has been established to support Omanis whose services have been terminated and job seekers. Non-Omanis are not entitled to any benefit from the Fund. Specified contributions for employers and Omani employees are provided as per the regulations governing the Fund.
Are there any gift, wealth, estate, and/or inheritance taxes in Oman?
None for individuals.
None for individuals. Transfer of ownership of real estate may entail 5 percent levy by the Ministry of Housing and Urban Planning.
On 12 October 2020, His Majesty, the Sultan of Oman, issued Royal Decree 121/2020 (Oman VAT Law) for the implementation of VAT in Oman. The Oman VAT Law is published in the Official Gazette on 18 October 2020 with an effective date of 16 April 2021.
Are there unemployment taxes in Oman?
The GCC has a common customs duty regime which imposes a flat 5 percent customs duty on the majority of goods entering the GCC. Personal effects and used household items brought into the country/jurisdictions by the nationals residing abroad or the foreigners coming for the first time for residence in the country/jurisdictions are exempt from customs duties, subject to the prescribed conditions and controls.
Will a non-resident of Oman who, as part of their employment within a group company, is also appointed as a statutory director (i.e. member of the Board of Directors in a group company situated in Oman) trigger a personal tax liability in Oman, even though no separate director's fee/remuneration is paid for their duties as a board member?
There is no personal income tax in Oman.
a) Will the taxation be triggered irrespective of whether or not the board member is physically present at the board meetings in Oman?
b) Will the answer be different if the cost directly or indirectly is charged to/allocated to the company situated in Oman (i.e. as a general management fee where the duties rendered as a board member is included)?
c) In the case that a tax liability is triggered, how will the taxable income be determined?
Is there a requirement to declare/report offshore assets (e.g. foreign financial accounts, securities) to the country/jurisdiction’s fiscal or banking authorities?
Please note that there is no personal income tax in Oman. However, the individuals, while opening a bank account in Oman shall inter alia be required to declare their tax residency as part of Common Reporting Standards (‘CRS’) rules effective from 1 July 2019 (apart from existing FATCA rules which apply to US residents). The banks may further, depending upon their obligations under CRS regime, disclose appropriate information pertaining to the financial assets of the account holder to the tax authorities.
All information contained in this publication is summarized by KPMG LLC, the Oman member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the Income Tax Law and Executive Regulations as on 18 October 2020. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
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KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.