Oman levies 15% tax on multinationals
Effective January 1, 2025
Oman—the oldest independent state in the Arab world—introduced a minimum top-up tax (DMTT) of 15% on multinational companies effective January 1, 2025, following a royal decree issued by Sultan Haitham bin Tariq.
The tax applies to multinationals with consolidated annual revenue exceeding $779.2 million.
However, after a recent meeting of its State Council, Oman has postponed implementing a personal income tax for high earners. The original proposal, introduced in 2022, aimed to tax foreign nationals earning over $100,000 annually at rates between 5% and 9% starting in 2026. Omani citizens would face a 5% tax on global income exceeding $1 million.
Oman’s economy has evolved significantly from its traditional reliance on agriculture, fisheries, and trade. Today, it is predominantly driven by the oil and gas sector, which continues to shape its financial landscape.
Despite this dependence, Oman is actively working on diversifying its economy through various initiatives. The country has been focusing on non-oil sectors such as tourism, mining, and manufacturing to reduce its reliance on hydrocarbons. Efforts to promote sustainable growth and control inflation reflect the nation’s commitment to long-term economic stability and foster a more resilient and diversified economy.
Oman is located on the southeastern coast of the Arabian Peninsula. It is known for its rich history, beautiful landscapes, and strategic position at the Arabian Gulf and Arabian Sea confluence.
The UAE also introduced a similar DMTT starting January 1, 2025, raising the corporate tax to 15% for large multinational enterprises. The UAE’s tax applies to companies with consolidated global revenues of $793 million or more in at least two of the four financial years immediately preceding the financial year in which the tax applies.
Bahrain also implemented DMTT on January 1, 2025, targeting large multinational enterprises, and Kuwait imposed a 15% tax on multinational companies on January 1, 2025.
The Arabian Gulf states are ramping up taxation in one form or another, following the UAE’s lead.
Hero image: Oman’s economy has evolved significantly from its traditional reliance on agriculture, fisheries, and trade. Credit: Saad Alawi
