Tax·Oman·July 13, 2026

Oman applies the Gulf’s joint-lowest VAT rate alongside a 15 per cent corporate tax

Oman's mix — low VAT, mid-range corporate tax — sits differently from its neighbours and rewards a country-by-country read.

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Published July 13, 2026 · Updated July 13, 2026

1 min read

Oman applies VAT at a standard rate of 5 per cent, level with the UAE and the joint-lowest among the four Gulf states that have implemented the tax. Its corporate income tax rate of 15 per cent, however, sits above the UAE’s 9 per cent.

That combination illustrates why single-metric comparisons across the Gulf mislead. A business weighing where to place an operation on VAT alone would reach one conclusion; weighing it on corporate tax alone would reach the opposite. The relevant figure depends entirely on where the business generates margin and how it repatriates profit.

Sector-specific rules add another layer, particularly in hydrocarbons, where separate arrangements are common across the region.

What this means

Comparing Gulf states on a single tax measure produces misleading conclusions. The combination is what matters to a business.

Official source

Oman Tax Authority

This article is general reporting, not financial or legal advice. Always confirm your specific obligations with the relevant authority or a licensed adviser.

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Oman applies the Gulf’s joint-lowest VAT rate alongside a 15 per cent corporate tax

What this means

Official source

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