Doing Business in Oman - RSM International

Applicability
The payments to which the withholding tax applies are:
i. Royalties
ii. Consideration for research and development
iii. Consideration for the use of or right to use computer software
iv. Management fees
Rate
The rate of withholding tax is 10% of the payment made or credit given.
Exemption
Dividend and interest income do not attract withholding tax.
Responsibility for tax deduction and payment
The Omani based tax payer is responsible for deducting the withholding tax and paying it
to the Secretariat General of Taxation, within 14 days of the end of the month in which the
amount has been paid or credited, whichever is earlier.
4.8 Double taxation agreements
Oman has entered into double taxation agreements with several countries including
Algeria, China, Egypt, France, India, Italy, Korea, Lebanon, Mauritius, Pakistan,
Russia, Singapore, South Africa, Sudan, United Kingdom and Yemen.
4.9 Transfer pricing
The Income Tax Law empowers the Secretariat General of Taxation to recompute the
taxable income of a tax payer if it is established that the main purpose of any transaction
between related parties is to avoid part or whole of any liability to tax due and payable for
that tax year.
Related party transactions
The Secretariat General of Taxation may make adjustments in respect of transactions
between related parties. The department may also disallow all or part of any expense it
believes to be inappropriate or unreasonable in relation to the value of goods sold or
services rendered. The level of management and advisory fees are scrutinised carefully.
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