Incentives in Muscat
CityCalc Insight
Oman's Al Duqm Special Economic Zone (SEZAD) offers one of the most favourable free zone regimes in the Arab world — 0% corporate tax for 30 years with full foreign ownership. Muscat is also geopolitically the safest GCC base for firms with Iran/Saudi exposure concerns.
SEZAD (Al Duqm)0% corporate tax / 30 yearsindicative
Personal Income TaxNoneindicative
Mainland Corporate Tax15%indicative
Sohar Free Zone0% tax / 25 yearsindicative
| FDI Law | Foreign Capital Investment Law (2019) — 100% ownership in most sectors |
|---|---|
| Profit Repatriation | 100% unrestricted |
| OIA Co-Investment | Oman Investment Authority offers co-investment and strategic partnerships in priority sectors |
| Corporate Income Tax | 15% standard; 3% for qualifying SMEs; 55% oil and gas Source: PwC Worldwide Tax Summaries |
| Personal Income Tax | None until 2028; then 5% on income above OMR 42000/year Source: PwC Worldwide Tax Summaries |
| VAT | 5% (since April 2021) Source: PwC Worldwide Tax Summaries |
| Withholding Tax | 10% on services royalties interest to non-residents Source: Oman Tax Authority |
| Recent Tax Developments | Oman becomes the first GCC state to introduce personal income tax — 5% on annual income above OMR 42,000 from 1 January 2028. It has adopted the OECD Income Inclusion Rule and has 37 tax treaties. Source: PwC Worldwide Tax Summaries |