pkf oman tax guide 2011

8/2/2019 pkf oman tax guide 2011

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OmanTax Guide

2011


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PKF Worldwide Tax Guide 2011 I

Foreword

foreword

For any business moving into new markets, a key deciding actor will be the targetcountrys tax regime. What is the corporate tax rate? Are there any incentives or

overseas businesses? Are there double tax treaties in place? How will oreign sourceincome be taxed?

Since 1994, the PKF network o independent member rms, administered by PKFInternational Limited, has produced the PKF Worldwide Tax Guide (WWTG) to provideinternational businesses with the answers to these key tax questions. This handyreerence guide provides clients and proessional practitioners with comprehensivetax and business inormation or 100 countries throughout the world.

As you will appreciate, the production o the WWTG is a huge team eort and I would

like to thank all the member rms o the PKF network who gave up their time tocontribute the vital inormation on their countrys taxes that orms the heart o thispublication. I would also like thank Richard Jones, PKF (UK) LLP, Kevin Reilly, PKF WittMares, and Rachel Yeo, PKF Melbourne or co-ordinating and checking the entriesrom within their regions.

The WWTG continues to expand refecting both the growth o the PKF network andthe strength o the tax capability oered by member rms throughout the world.

I hope that you nd that the combination o reerence to the WWTG plus assistancerom your local PKF member rm will provide you with the advice you need to makethe right decisions or your international business.

Jon HillsPKF (UK) LLPChairman, International Tax Committee o the PKF International network


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PKF Worldwide Tax Guide 2011II

important disclaimer

This publication should not be regarded as oering a complete explanation o thetaxation matters that are contained within this publication.

This publication has been sold or distributed on the express terms and understandingthat the publishers and the authors are not responsible or the results o any actionswhich are undertaken on the basis o the inormation which is contained within thispublication, nor or any error in, or omission rom, this publication.

The publishers and the authors expressly disclaim all and any liability and responsibilityto any person, entity or corporation who acts or ails to act as a consequence o anyreliance upon the whole or any part o the contents o this publication.

Accordingly no person, entity or corporation should act or rely upon any matter orinormation as contained or implied within this publication without rst obtainingadvice rom an appropriately qualied proessional person or rm o advisors, andensuring that such advice specically relates to their particular circumstances.

PKF International is a network o legally independent member rms administered byPKF International Limited (PKFI). Neither PKFI nor the member rms o the networkgenerally accept any responsibility or liability or the actions or inactions on the parto any individual member rm or rms.

Disclaimer


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PKF Worldwide Tax Guide 2011 III

Preface

preface

The PKF Worldwide Tax Guide 2011 (WWTG) has been prepared to provide anoverview o the taxation and business regulation regimes o 100 o the worlds most

signicant trading countries. In compiling this publication, member rms o thePKF network have sought to base their summaries on inormation current as o 30September 2010, while also noting imminent changes where necessary.

On a country-by-country basis, each summary addresses the major taxes applicableto business; how taxable income is determined; sundry other related taxationand business issues; and the countrys personal tax regime. The nal section oeach country summary sets out the Double Tax Treaty and Non-Treaty rates o taxwithholding relating to the payment o dividends, interest, royalties and other relatedpayments.

While the WWTG should not to be regarded as oering a complete explanation othe taxation issues in each country, we hope readers will use the publication as theirrst point o reerence and then use the services o their local PKF member rm toprovide specic inormation and advice.

In addition to the printed version o the WWTG, individual country taxation guides areavailable in PDF ormat which can be downloaded rom the PKF website at www.pk.com

Finally, PKF International Limited gladly welcomes any comments or thoughts readersmay wish to make in order to improve this publication or their needs. Please contactKevin F Reilly, PKF Witt Mares, 10304 Eaton Place, Suite 440, Fairax, Virginia 22030,USA by email to [email protected]

PKF INTERNATIONAL LIMITEDMARCH 2011

PKF INTERNATIONAL LIMITEDALL RIGHTS RESERVEDUSE APPROVED WITH ATTRIBUTION


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PKF Worldwide Tax Guide 2011IV

about pKf international limited

PKF International Limited (PKFI) administers a network o legally independent rms.The PKF network is the 10th largest global accountancy network with over 245

legally independent member and correspondent rms which have a combinedannual turnover o $2.4 billion. Located in 125 countries, the member rms o thePKF network share a commitment to providing clients with high quality, partner-ledservices tailored to meet each clients own specic requirements.

The membership base o the PKF network has grown steadily since it was ormedin 1969. Added to the sustained growth in the number o PKF member rms, thissolidity has provided the oundations or the global sharing o expertise, experienceand skills and the development o services that meet the evolving needs o all typeso client, rom the individual to the multi-national corporation.

Services provided by member rms include:

Assurance & AdvisoryInsolvency Corporate & PersonalFinancial PlanningTaxationCorporate FinanceForensic Accounting

Management ConsultancyHotel ConsultancyIT Consultancy

PKF member rms are organised into ve geographical regions covering Arica; LatinAmerica; Asia Pacic; Europe, the Middle East & India (EMEI); and North America &the Caribbean. Each region elects representatives to the board o PKF InternationalLimited, which administers the network. While the member rms remain separate andindependent, international tax, corporate nance, proessional standards, audit, hotelconsultancy and business development committees also work together to improvequality standards, develop initiatives and share knowledge across the network.

Please visit .pkf.com or more inormation.

Introduction


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PKF Worldwide Tax Guide 2011 V

S

tructure

structure of country descriptions

a. taXes payable

FEDERAL TAXES AND LEVIESCOMPANY TAXCAPITAL GAINS TAXBRANCH PROFITS TAXSALES TAX/VALUE ADDED TAXFRINGE BENEFITS TAXLOCAL TAXESOTHER TAXES

b. determination of taXable income

CAPITAL ALLOWANCESDEPRECIATIONSTOCK/INVENTORYCAPITAL GAINS AND LOSSESDIVIDENDSINTEREST DEDUCTIONSLOSSESFOREIGN SOURCED INCOME

INCENTIVES

c. foreiGn taX relief

d. corporate Groups

e. related party transactions

f. witHHoldinG taX

G. eXcHanGe control

H. personal taX

i. treaty and non-treaty witHHoldinG taX rates


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PKF Worldwide Tax Guide 2011VI

AAlgeria . . . . . . . . . . . . . . . . . 12 noonAngola . . . . . . . . . . . . . . . . . . . .1 pmArgentina . . . . . . . . . . . . . . . . . .9 amAustralia -

Melbourne . . . . . . . . . . . . . 10 pmSydney . . . . . . . . . . . . . . .10 pmAdelaide . . . . . . . . . . . . 9.30 pmPerth . . . . . . . . . . . . . . . . . .8 pm

Austria . . . . . . . . . . . . . . . . . . . .1 pm

BBahamas . . . . . . . . . . . . . . . . . . .7 amBahrain . . . . . . . . . . . . . . . . . . . .3 pmBelgium. . . . . . . . . . . . . . . . . . . .1 pmBelize . . . . . . . . . . . . . . . . . . . . .6 amBermuda . . . . . . . . . . . . . . . . . . .8 amBrazil. . . . . . . . . . . . . . . . . . . . . .7 am

British Virgin Islands . . . . . . . . . . .7 am

CCanada -

Toronto . . . . . . . . . . . . . . . .7 amWinnipeg . . . . . . . . . . . . . . . 6 amCalgary . . . . . . . . . . . . . . . .5 amVancouver . . . . . . . . . . . . . . 4 am

Cayman Islands . . . . . . . . . . . . . .7 amChile . . . . . . . . . . . . . . . . . . . . . .8 amChina - Beijing . . . . . . . . . . . . . .10 pmColombia . . . . . . . . . . . . . . . . . . .7 amCroatia . . . . . . . . . . . . . . . . . . . .1 pmCyprus . . . . . . . . . . . . . . . . . . . .2 pmCzech Republic . . . . . . . . . . . . . . 1 pm

DDenmark . . . . . . . . . . . . . . . . . . .1 pmDominican Republic . . . . . . . . . . .7 am

EEcuador . . . . . . . . . . . . . . . . . . . .7 amEgypt . . . . . . . . . . . . . . . . . . . . .2 pmEl Salvador . . . . . . . . . . . . . . . . . 6 amEstonia . . . . . . . . . . . . . . . . . . . .2 pm

FFiji . . . . . . . . . . . . . . . . .12 midnightFinland . . . . . . . . . . . . . . . . . . . .2 pmFrance. . . . . . . . . . . . . . . . . . . . .1 pm

GGambia (The) . . . . . . . . . . . . . 12 noonGermany . . . . . . . . . . . . . . . . . . .1 pmGhana . . . . . . . . . . . . . . . . . . 12 noonGreece . . . . . . . . . . . . . . . . . . . .2 pmGrenada . . . . . . . . . . . . . . . . . . .8 amGuatemala . . . . . . . . . . . . . . . . . . 6 am

Guernsey . . . . . . . . . . . . . . . . 12 noonGuyana . . . . . . . . . . . . . . . . . . . .8 am

HHong Kong . . . . . . . . . . . . . . . . .8 pmHungary . . . . . . . . . . . . . . . . . . .1 pm

IIndia . . . . . . . . . . . . . . . . . . . 5.30 pm

Indonesia. . . . . . . . . . . . . . . . . . .7 pmIreland . . . . . . . . . . . . . . . . . . 12 noon

Isle o Man . . . . . . . . . . . . . . 12 noonItaly . . . . . . . . . . . . . . . . . . . . . .1 pm

JJamaica . . . . . . . . . . . . . . . . . . .7 amJapan . . . . . . . . . . . . . . . . . . . . .9 pmJersey . . . . . . . . . . . . . . . . . . 12 noonJordan . . . . . . . . . . . . . . . . . . . .2 pm

KKazakhstan . . . . . . . . . . . . . . . . .5 pmKenya . . . . . . . . . . . . . . . . . . . . .3 pmKorea . . . . . . . . . . . . . . . . . . . . .9 pmKuwait . . . . . . . . . . . . . . . . . . . . .3 pm

LLatvia . . . . . . . . . . . . . . . . . . . . .2 pmLebanon . . . . . . . . . . . . . . . . . . .2 pm

Liberia . . . . . . . . . . . . . . . . . . 12 noonLibya . . . . . . . . . . . . . . . . . . . . . .2 pmLuxembourg . . . . . . . . . . . . . . . .1 pm

MMalaysia . . . . . . . . . . . . . . . . . . .8 pmMalta . . . . . . . . . . . . . . . . . . . . .1 pmMauritius . . . . . . . . . . . . . . . . . . .4 pmMexico . . . . . . . . . . . . . . . . . . . .6 amMorocco . . . . . . . . . . . . . . . . 12 noon

NNamibia. . . . . . . . . . . . . . . . . . . .2 pmNetherlands (The). . . . . . . . . . . . .1 pmNew Zealand . . . . . . . . . . .12 midnightNigeria . . . . . . . . . . . . . . . . . . . .1 pmNorway . . . . . . . . . . . . . . . . . . . .1 pm

O

Oman . . . . . . . . . . . . . . . . . . . . .4 pm

PPanama. . . . . . . . . . . . . . . . . . . .7 amPapua New Guinea. . . . . . . . . . .10 pmPhilippines . . . . . . . . . . . . . . . . . .8 pmPoland. . . . . . . . . . . . . . . . . . . . .1 pmPortugal . . . . . . . . . . . . . . . . . . .1 pmPuerto Rico . . . . . . . . . . . . . . . . . 8 am

QQatar. . . . . . . . . . . . . . . . . . . . . .8 am

RRomania . . . . . . . . . . . . . . . . . . .2 pmRussia -

Moscow/St Petersburg . . . . .3 pm

S

Serbia . . . . . . . . . . . . . . . . . . . . .1 pmSierra Leone . . . . . . . . . . . . . 12 noonSingapore . . . . . . . . . . . . . . . . . .7 pmSlovak Republic . . . . . . . . . . . . . .1 pmSlovenia . . . . . . . . . . . . . . . . . . .1 pmSouth Arica . . . . . . . . . . . . . . . . .2 pmSpain . . . . . . . . . . . . . . . . . . . . .1 pmSweden . . . . . . . . . . . . . . . . . . . .1 pmSwitzerland . . . . . . . . . . . . . . . . .1 pm

international time Zones

AT 12 NOON, GREENwICH MEAN TIME, THE STANDARD TIMEELSEwHERE IS:

TimeZones


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PKF Worldwide Tax Guide 2011 VII

TimeZones

TTaiwan . . . . . . . . . . . . . . . . . . . .8 pmThailand . . . . . . . . . . . . . . . . . . .7 pmTunisia . . . . . . . . . . . . . . . . . 12 noon

Turkey . . . . . . . . . . . . . . . . . . . . .2 pmTurks and Caicos Islands . . . . . . .7 am

UUganda . . . . . . . . . . . . . . . . . . . .2 pmUnited Arab Emirates . . . . . . . . . .4 pmUnited Kingdom . . . . . . .(GMT) 12 noonUnited States o America -

New York City . . . . . . . . . . . .7 amWashington, D.C. . . . . . . . . .7 am

Chicago . . . . . . . . . . . . . . . . 6 amHouston . . . . . . . . . . . . . . . . 6 amDenver . . . . . . . . . . . . . . . .5 amLos Angeles . . . . . . . . . . . . . 4 amSan Francisco . . . . . . . . . . .4 am

Uruguay . . . . . . . . . . . . . . . . . . .9 am

VVenezuela . . . . . . . . . . . . . . . . . . 8 am

Vietnam . . . . . . . . . . . . . . . . . . . .7 pm


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PKF Worldwide Tax Guide 2011 1

oman

Currency: Rial Omani Dial Code To: 968 Dial Code Out: 00 (RO)

Member Firm:City: Name: Contact Inormation:Muscat Percy Bhaya 24563 195

[email protected]

a. taXes payable

FEDERAL TAxES AND LEVIESCOMPANy TAx

For Tax year ending up to 31 December, 2009, net taxable assessed income issubject to the ollowing tax rate structure.

(1A) Entities wholly owned by Omanis or where Omani shareholding in the capital oa company is 51% or more (revised rom tax year 2001 to entities wholly ownedby Omanis and mixed ownership companies o which 70% or less than 70%capital is owned by oreigners and urther revised to 100% oreign ownershipor all Omani establishments rom the year 2003):

therstRO30,000/ofthetaxableincomeisexempt

taxableincomeoverRO30,000/istaxedataatrateof12% ataxrateof12%willbeapplicabletoGeneralJointStockCompaniesirrespective o the extent o oreign shareholding

incomeearnedbyjointinvestmentaccounts/mutualfundsregisteredinOmanunder the Capital Market Laws, or established overseas or dealing in sharesand securities listed on Muscat Securities Market is exempted rom tax

anyestablishmentregisteredinOmanbyGCCcitizensirrespectiveoftheact whether they carry out permitted activity or not and irrespective otheir percentage o capital contribution will have the applicable tax rate asspecied above or all Omani establishments.

For Ta ear ending after 31 December 2009(1B) The same tax rate as mentioned above continues: FirstRO30,000oftaxableincomeofthecompany-Taxfree. BalancetaxableincomeoverRO30,000-Taxedataatrateof12%.

For Ta ear ending up to 31 December 2009(2A) The applicable tax rates or a branch o a oreign company rom tax year 2001

is as ollows:

Taable/assessed income (RO) Ta rate

0 to 5,000 0%

5,000 to 18,000 5%

18,000 to 35,000 10%

35,000 to 55,000 15%

55,000 to 75,000 20%

75,000 to 100,000 25%

Over 100,000 30%

The entire taxable income is taxed at the percentage rate corresponding to theincome bracket into which the total income alls. The company is, however, subjectto a relie where the taxable prots all marginally into a higher bracket. In this case,the tax payable is calculated as above and is then compared with the sum o thetax payable on the highest limit o the bracket just below that into which the taxableincome alls and the amount o the marginal income in excess o the aoresaid limit.

The lower o these two amounts is the tax payable.

For Ta ear ending after 31 December 2009(2B) Branches o oreign companies or income earned by a PE in Oman o a oreign

company will be taxed as under: FirstRO30,000oftaxableincomeofthecompany-Taxfree. BalancetaxableincomeoverRO30,000-Taxedataatrateof12%.

PETROLEUM COMPANIES

Special provisions are applicable to taxation o income derived rom sale opetroleum. The tax rate is 55% since 1970. Oman LNG Company LLC is subject to aspecial tax rate o 15% as per provisions o Royal Decree No 95/96.

Oman


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PKF Worldwide Tax Guide 20112

TAx ExEMPTIONSCompanies carrying out the ollowing specied activities will be exempted rom taxonly to the extent o the income arising rom the specied activities: industryinaccordancewiththeLawofOrganisingandEncouragingIndustry

and Mining exportationoflocallymanufacturedorprocessedproducts promotionoftourismwhichmayincludesettingupandoperationoftourist

hotels and villages with the exception o management contracts dairyfarmproductsandprocessingofthesamewhichmayincludelivestock

breeding, processing or manuacture o livestock products and agriculturalindustries

shingandshprocessing educationalinstitutionsandprivatehospitals.

The exemption rom tax or companies engaged in the above activities will beoperative or a period o ve years eective rom the date that activity or productionactivity commences. The period o exemption may be urther extended or a periodnot exceeding ve years provided that a decision is issued to that eect by theFinancial Aairs and Energy Resources Council. Companies engaged in the aboveactivities are allowed to indenitely carry orward their losses (beyond the exemptedperiod o ve years) and deduct it in subsequent years until losses are ully absorbed.

TAx yEAR

The tax year is the calendar year although a special permit can be obtained rom theMinistry o Finance or a dierent scal period.

PROVISIONAL AND ANNUAL RETURNS OF INCOMEProvisional tax is to be paid and provisional return o income is to be led within threemonths o the end o the accounting period.

Annual return and annual tax settlement is due at the end o six months ollowing theclose o accounting period. The same should be led along with the audited accounts.

CAPITAL GAINS TAxCapital gains are normally regarded as part o ordinary corporate income and thetotal income is taxed at applicable tax rates. With eect rom 1 January 2003, protmade on sale o securities listed on Muscat Securities Market is exempt rom tax.Also the loss, i any, will not be allowed as a deductible expense.

BRANCH PROFITS TAxBranches o oreign companies are taxed in Oman i PE o a oreign company isestablished in Oman. Allowance or allocated head oce expenditure is on restricted

basis.

OTHER TAxESConsumption taxes include the ollowing:

Rate

On annual rental o leased premises and cinema tickets 3%

Electricity bills in excess o RO 50/- 2%

Hotels and restaurant bills 5%

Municipal taxes are payable in the Muscat and Salalah municipalities. The taxescharged in the Muscat municipality are as ollows:

Rate

Hotel income 5%

Property rents 3%

Leisure and cinema income 10%

Tax on home owners using the drainage system 10%

VOCATIONAL TRAINING LEVyMinisterial Decision 84/98 species the vocational training levy on employers atPrivate Sector at R0 100/- annually per expatriate employee. The decision is eectiverom 8 March 1998.

SOCIAL SECURITy PREMIUMEmployers are required to pay a social security premium equal to 17% o the salaries oits Omani employees. O this amount, 6.5% is recoverable rom the Omani employees.

Oman


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CUSTOMS DUTIESCustoms duties are levied on certain categories o imported goods. The rates rangerom 5% to 100%.

b. determination of taXable income

Taxable income is computed in accordance with the generally accepted accountingprinciples applied on a consistent and regular basis. The accrual basis is generallyto be used although, in special cases, the Director o Income Tax may approve cashbasis o accounting.

As a basic rule, all expenses which are incurred wholly and exclusively or thepurposes o business and are incurred to generate the gross income o theestablishment are allowed to be deducted provided they are reasonable considering

value o services received. Any expense or cost incurred to generate income which isexempted rom income tax will not be allowed as a deductible expense.

Remuneration to working partners and owners amily members is allowed onrestricted basis.

Certain charges have been specied as not deductible and certain charges havebeen restricted to specic amounts by the tax law.

DEPRECIATION AND AMORTISATIONFOR TAx yEAR ENDING UP TO 31 DECEMBER 2009Depreciation is deductible on the basis o straight-line method at rates prescribed below:

Assets Rate

Permanent buildings 4%

Preabricated buildings 15%

Bridges, platorms, pipelines, permanent way and railway lines 10%

Heavy equipment 33.33%

Vehicles 33.33%

Furnishings 33.33%

Other equipment and tools 15%

Aircrat and ships 15%

Hospital buildings and educational establishments 100%

Scientic research implements 100%

Amortisation o intangible assets is also allowed at a rate approved by the SecretaryGeneral o Taxation Aairs.

In case o buildings used or industrial purposes (excluding buildings or housing oemployees, oce and storage), the stated rates o depreciation shall be doubled.

In case o tools and equipment which are used or three shits o work per day,depreciation rate stated above shall be increased by a maximum o 50%. The additionaldepreciation to be computed by reerence to the number o days that the tools andequipment are used or three shits in proportion to three hundred working days per year.

FOR TAx yEAR ENDING AFTER 31 DECEMBER 2009DEPRECIATION A major change in depreciation under the new Income Tax Decree is the

introduction o the concept o pooling o assets. According to this concept,all assets coming under a certain category would be depreciated by applyingdepreciation rate as specied in the new Income Tax Decree on written down

value method, which would be computed as under: Openingnetwrittendownvalue Add:additionsmadeduringtheyear Less:Saleproceedsduringtheyear Consequent to above change in the depreciation methodology, there will be no

balancing charge or balancing allowance i.e. there will be no prot or loss onsale o assets or tax computations.

Earlier, under old Tax Decree, depreciation was allowed on straight line method.Now as per the new Income Tax Decree, it will be allowed on written down value

method on all assets except or depreciation on Buildings, Aircrats and Shipswhich would continue on straight line basis. The depreciation rate on First classbuilding is 4% and on Second class building, Aircrat and Ship is 15%.

Oman


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PKF Worldwide Tax Guide 20114

The depreciation rates have remained same or all assets, except ordepreciation rates or Computer and Sotwares which is now revised rom 15%to 33.33%, and on Drilling rigs which will now be allowed at the rate o 10%.

STOCK/INVENTORyOman tax regulations do not specically establish which methods o inventoryvaluation must be used, nor how inventory fows be determined. At present, any othree methods average, FIFO or LIFO are deemed to represent the actual costrequired by tax rules.

Reserves and provisions or inventory shortages and obsolescence are notacceptable as a deductible expense or tax purposes but actual losses and writeos are allowed in the year in which they occur provided they are supported withadequate documentation.

CAPITAL GAINS AND LOSSESCapital gains and losses are normally regarded as part o ordinary corporate income.

DIVIDENDSIncome tax is not chargeable on dividends received by sole proprietary commercialestablishments and by companies on shares held in the capital o another companyregistered in Oman.

INTEREST DEDUCTIONSInterest paid on the borrowing used or business purposes is deductible.

LOSSESNet operating losses can be carried orward and set o against subsequent prots orve years. Companies or which preerential rates o taxation apply can indenitelycarry orward their losses (beyond the exempted period o ve years) and deduct it insubsequent years until losses are ully absorbed.

c. foreiGn taX relief

Sultanate o Oman has entered into agreements or the avoidance o double taxation(DTA) and the prevention o avoiding income tax with France, India, Tunisia, UnitedKingdom, Mauritius, Italy, Pakistan, Algeria, Lebanon, China, Yemen, South Arica,Sudan, Seychelles, Iran, Canada, Turkey, Syria, Republic o South Korea, SingaporeThailand, Uzbekistan, Belarus, Brunei, Netherlands, Maldova, Vietnam, Belgium,Malaysia and South Korea.

Currently, most o the oreign airlines carrying on business through establishment in

Oman are exempted rom income tax either through comprehensive DTAs or throughlimited DTAs. The oreign airlines which earn income through establishment in Oman,and which do not have comprehensive DTAs or limited DTAs, would be exemptedrom tax eective rom 1 January 2003 provided reciprocal tax exemption is grantedin the airlines home country. The countries whose airlines have signed agreementsor tax relie are India, Kuwait, Jordan, Netherlands, Tanzania, Sri Lanka, Iran,Singapore, Sweden and Switzerland.

Tax credit is unilaterally allowed by certain countries, e.g. the UK, USA and Germany inrespect o tax paid by oreign business entities in Oman, on satisaction o certain conditions.

Income earned overseas by a PE (permanent establishment) in Oman will be taxed inOman. Corresponding tax credit in Oman will be given to the extent o Omani tax i.e.12% or oreign tax paid on that income whichever is lower.

d. corporate Groups

There are no provisions or group taxation or or o setting losses o one companyagainst another.

e. related party transactions

Transactions with related parties are subject to detailed scrutiny to conrm thatprices are at arms length and that expenses exclude element o prots in case otransactions between Head Oce and branch and 100% subsidiary companies.

f. witHHoldinG taX

Withholding taxes have been introduced on oreign companies which have nopermanent establishment in Oman and receive amounts or ollowing services romcompanies or permanent establishment situated in Oman.

Oman


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1. Royalties2. Consideration or research and development3. Consideration or the use o or right to use computer sotware4. Management ees.

Tax at the rate o 10% o the gross income shall be deducted at source. Theobligation to deduct this tax shall rest with the company or the permanentestablishment which pays the above amount.

G. eXcHanGe control

There are no exchange controls in any orm on inward or outward investment or onrepatriation o capital or prots, either by nationals or expatriates.

H. personal taX

Currently, there is no personal income/wealth tax in Oman.

i. treaty witHHoldinG taX rates

The ollowing rates or royalties apply:

Roalties (%)

Treaty Countries:

Canada 10 (1)

China 10

France 0

India 10

Italy 10

Korea 8Mauritius 0

Moldova 10

Pakistan 10

Seychelles 10

Singapore 8

South Arica 8

Thailand 10

United Kingdom 0

1 Copyright royalties are not subject to withholding tax under the provisions o this treaty.

Oman


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pkf oman tax guide 2011

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