Corporate Tax registration in Oman
Oman’s move to modernise its tax framework has made corporate income tax registration a standard requirement for businesses operating in the country.
Under the Income Tax Law, all legal entities doing business in Oman must register with the Oman Tax Authority (OTA), regardless of whether they generate taxable profits or fall under an exemption. This includes:
With 100% foreign ownership now available to foreign investors in multiple sectors, Oman has also been attracting a large amount of foreign investment. This article looks at the registration process, outlines the documents required and highlights key deadlines.
Tax rates and exemptions
Oman levies corporate income tax at a standard flat rate of 15% on net profits. There is no tax-free threshold.
However, small Omani-owned businesses with income below a certain threshold may qualify for a reduced Oman corporate tax rate of 3%, subject to strict eligibility criteria. This lower rate does not apply to foreign-owned entities, regardless of size or sector.
Corporate tax applies to all income sourced from commercial activity carried out in Oman, including services, consultancy, trading and investment income. Branches of foreign companies are taxed only on income attributable to their local operations.
Exemptions exist for certain sectors and entities, such as government-owned firms and qualifying investments, but these must still be declared through the standard registration process.
Tax holidays granted in Free Zones or under investment laws do not negate the duty to register or file returns. Under the Income Tax Law, the obligation to comply remains in full.
Who needs to register?
The registration requirement is tied to legal presence, not activity or profitability. Whether a company is dormant, pre-revenue, exempt under a tax treaty or based in a Free Zone, it is still required to register with the OTA.
Tax status comes after registration, not instead of it. Even if there is no tax due, a company is still required to file annual returns, keep financial records and respond to authority requests.
Being registered also unlocks access to services like VAT enrolment, tax certificates and refund claims, none of which are possible without an active the Taxpayer Identification Number (TIN).
Registration timeline and penalties
The deadline to register is 60 days from the date of establishing a business or initiating taxable operations. This includes setting up a new branch, amending ownership or relocating an office.
Failure to meet the deadline can result in more than just a fine. A TIN is essential for all correspondence with the Tax Authority and provides access to essential services like VAT registration, tax certificates or foreign tax credits.
Late registration can set off a chain reaction: return filings become more complicated, system access is restricted and audit exposure increases. Getting on record early keeps the process smooth and your wider compliance on track.
Documents required
To register, you will need to submit:
- Commercial Registration (CR) certificate.
- Business Trade Licence.
- Lease agreement confirming business address.
- ID of the authorised signatory.
Depending on your structure, the Tax Authority may also request:
- Shareholder details.
- Capital breakdown.
- Financial statements.
It is important to check that names, licence numbers and company data are consistent across all records. Mismatches are a common cause of delays and may require applicants to re-submit documentation.
How to register
Corporate Tax registration is handled entirely through the Oman Tax Authority’s online portal. After creating an e-services account, the application form must be submitted and the required documents uploaded. If everything is in order, the system will generate a TIN, which confirms registration and enables further actions such as filing returns or applying for tax clearances.
The portal has become noticeably more stable and user-friendly in recent months, with faster processing times and clearer status tracking. Even so, errors in uploaded documents or inconsistencies across records remain common triggers for rejection or delay. Preparing all information carefully upfront is still the most effective way to avoid friction during review.
Post-registration requirements
Once registered, businesses must meet a range of ongoing obligations. These include maintaining financial records, filing annual returns, disclosing relevant information, and responding to authority requests.
Businesses are required to file tax returns annually, which requires them to:
- Prepare audited financial statements.
- Submit the annual return within six months of the end of the financial year.
- Pay any tax liabilities on time.
Delay or failure in submitting the annual return may attract a penalty of not less than OMR100 and not more than OMR2,000. It may also result in an estimated profit assessment by the OTA.
Failure to submit audited accounts will result in an incomplete annual return of income and may also attract an estimated profit assessment. The requirement of submitting audited financial statements has been relaxed for SME taxpayers who fall in the category of the 3% tax rate.
The Law requires accounting records and supporting documentation to be maintained for 10 years after the end of the accounting period to which these records relate.
Work is already underway to roll out additional requirements, including e-invoicing, transfer pricing rules and compliance with global minimum tax standards under the OECD’s Pillar Two arrangements.
Businesses should ensure that their systems and internal processes are aligned with current rules and adaptable to future changes, particularly where cross-border activities or group structures are involved.
What this means for your business
Oman’s approach to tax is changing. The latest reforms point to a more structured, enforcement-focused system that brings closer alignment with international standards. For business owners, this means taking compliance seriously from the start.
Whether you are setting up a new entity or expanding into the Omani market, getting registered on time in Oman helps avoid delays, penalties and unnecessary complications. With requirements continuing to evolve, early professional guidance will help you to stay compliant and plan with confidence.
How can Sovereign PPG help?
Sovereign PPG works with businesses across the Gulf Cooperation Council (GCC) member states to meet and manage their corporate tax registration, licensing and compliance requirements. We also advise on structuring, PRO services, employment and visas, assisting our clients to stay ahead as regulations evolve.
To speak with our team, call +971 (0)4 456 1761 (Dubai) or +971 (0)2 448 5120 (Abu Dhabi), email sovppg@sovereigngroup.com, or fill out the contact form below. We are here to help.
Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.
