Incentives in Sohar
Recent Tax DevelopmentsRoyal Decree 70/2024 on 31 December 2024 that introduces a Top-up TaxSource: PwC Worldwide Tax Summaries
Free Zone: SOHAR100% foreign ownership; Corporate tax holiday of up to 25 years; One-Stop-Shop for all relevant clearance; 0% import or re-export duties; 0% personal income tax; Low capital requirement; Relaxed level of Omanisation; Free trade agreements with US and SingaporeSource: OPAZ / SOHAR Port and Freezone
| 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 |
| Free Zone: SOHAR | 100% foreign ownership; corporate tax holiday up to 25 years; 0% import/re-export duties; 0% personal income tax Source: OPAZ / SOHAR Port and Freezone |