Oman / Oman Rules Reference
Oman Rules Reference
The Oman rules the system follows, with the figures, the deadlines and where each rule applies in Odoo. Last checked: 20 October 2026.
Checked against the primary texts and official pages on 20 October 2026. This is a reference for accountants, not legal advice. Where a rule says secondary source, confirm with the Tax Authority or the instrument itself.
VAT
| Rule | Detail |
|---|---|
| Law | Royal Decree 121/2020. Executive Regulation: Decision 53/2021, amended by 456/2022, 521/2023, 81/2025 and 189/2026. |
| Rate | 5% standard. 0% for zero-rated supplies and exports. Some supplies are exempt or out of scope. Reverse charge applies to purchases from suppliers outside Oman. |
| Registration | Mandatory above OMR 38,500 of supplies (looking back 12 months, or forward 11 months). Voluntary from OMR 19,250. |
| Period and filing | Quarterly (1 Jan-31 Mar, 1 Apr-30 Jun, 1 Jul-30 Sep, 1 Oct-31 Dec). Return and payment within 30 days after the period, on the Tax Portal. |
| Additional tax | 1% per month or part of a month on unpaid tax. |
| Records | 10 years from the end of the tax year of the return (15 years for real estate). Arabic version on request. |
| Assessment limit | 5 years from the filing deadline, 10 years if not registered. |
| Tax invoice | Issued within 15 days of the supply. Must show the words tax invoice, dates, sequential number, names, addresses and tax numbers, description, quantity, rate, taxable value and tax. In Arabic (English with an Arabic translation on request). |
| Simplified invoice | Allowed when the supply is below OMR 500 excluding tax. A full tax invoice must be issued on the customer's request. |
| Credit and debit notes | A credit note reduces tax after a cancellation or return (within 3 months) or a published discount. A debit note increases it. Each refers to the original invoice. |
| Bad debt relief | Debt written off and unpaid for 12 months, tax declared and paid, customer notified in writing, claimed within 3 years; for supplies above OMR 5,000 the collection steps of Art 52 must be taken. |
| Input tax | Deductible only with the original tax invoice. Not deductible: entertainment, passenger vehicles up to 10 seats (except rental or emergency), food and beverage catering. Mixed use needs apportionment. |
| Penalties (administrative) | OMR 500-5,000 for late returns or invoices that do not meet the requirements. OMR 1,000-10,000 for refunds on incorrect documents, failure to repay a wrong refund, or failure to show prices inclusive of tax. 1%-25% of the difference for an incorrect return. 300% of the tax for evasion. |
| Penalties (criminal) | Art 100: prison 2 months to 1 year and/or OMR 1,000-10,000. Art 101: prison 1 to 3 years and/or OMR 5,000-20,000 (secondary summary). |
| Zero-rated lists from 1 Oct 2026 | Decision 225/2026 food, 224/2026 medicines and medical equipment, 223/2026 veterinary, by customs tariff code. |
E-invoicing (Fawtara)
| Rule | Detail |
|---|---|
| Law | Decision 189/2026 (Gazette 1660, 9 August 2026). Replaces Art 143 of the Executive Regulation and adds Arts 143 bis, 143 bis (1) and 143 bis (2). |
| Obligation | An approved, secured electronic tax invoice with a unique number for every supply. |
| From 1 April 2027 | Taxable persons with annual supplies above OMR 5,000,000. |
| From 1 October 2027 | All other taxable persons. |
| Exemption | The Tax Authority may exempt on application, if returns and payments are on time. |
| Format and flow | Peppol PINT OM. Five-corner model through accredited service providers. B2B in real time, B2C within 24 hours with a QR code (Fawtara FAQ). |
| Open points | Peppol supports 2 decimals while OMR has 3. How annual supplies are measured is not stated. The Tax Authority's FAQ still shows an older phase plan; Decision 189/2026 governs. |
FiscFort does not send e-invoices to the Tax Authority today. The portal produces PDF invoices from the recorded data.
Income tax
| Rule | Detail |
|---|---|
| Law | Royal Decree 28/2009 as amended. Executive Regulation: Decision 30/2012, amended by 14/2019, 313/2025 and 180/2026. |
| Rate | 15% of taxable income, with no tax-free slice. 55% on petroleum income. |
| Small establishment | 3% of taxable income (Art 159 bis). Entry: capital up to OMR 50,000, gross income up to OMR 100,000, up to 15 workers, Omani-owned, trading, industrial, craft or service activity. It may continue up to OMR 60,000 / 150,000 / 25 workers (Reg Art 164). Professional activities are excluded. |
| 0% tier | A small establishment whose owner manages it full time, or that employs at least two Omanis for at least 6 months. A return is still filed. |
| Return | Within 4 months of the year end (3 months for the 3% regime). Audited accounts attached at 15%. Accrual basis, IFRS or an approved equivalent, in OMR. |
| Records | At least 10 years. |
| Losses | Carried forward 5 years. No carry-back. |
| Penalties | Late filing OMR 100-2,000. Late payment 1% per month. Understated income 1%-25% of the tax difference. |
| Withholding tax | 10% on royalties, research and development, software, management fees and services paid to non-residents without a permanent establishment. Due by the 14th of the following month. Dividend and interest withholding is suspended. |
| Deduction limits | Donations 5% of gross income. Sponsor's fees 5%. Head-office costs of a permanent establishment 3% of gross income. Owner and partner salaries up to OMR 1,500 a month (OMR 3,500 professional) and 25% (35%) of taxable income. Related-party interest scaled when loans exceed twice equity. |
| Decision 180/2026 | New conditions for deducting expenses incurred to comply with government decisions. Corporate tax only, for years starting on or after 1 January 2027. |
| Personal income tax | Royal Decree 56/2025, from 1 January 2028: 5% above OMR 42,000 a year, withheld by the employer. The executive regulation is not published. |
| Top-Up Tax | Royal Decree 70/2024, groups with revenue of EUR 750 million or more. Not relevant to small and medium customers. |
Social Protection Fund
| Rule | Detail |
|---|---|
| Law | Royal Decree 52/2023 and its Executive Regulation (Decision R/7/2023). Royal Decree 60/2025 moved some start dates. |
| Omani employee | 7.5% old age + 0.5% employment security = 8%. |
| Omani employer | 11% old age + 1% work injury + 0.5% employment security + 1% maternity (from 1 July 2024) + 1% sick and other leave (from 19 July 2026) = 14.5%. |
| Non-Omani employer | 1% maternity + 1% sick leave = 2%. Work-injury cover for non-Omanis is deferred to 19 July 2028. |
| Wage | Gross wage: basic plus all allowances. Ceiling of OMR 3,000 a month for old age and work injury (Art 52). |
| Calculation | Daily, from the joining date to the day before the end date, including unpaid leave and suspension (Reg Art 29). |
| Payment | By the 15th of the following month. The employer may deduct the employee's share from wages. |
| Deadlines | Register or deregister within 30 days. Report a wage or job change within 14 days. Wage on record can be disputed within 90 days. |
| Penalties | Late or understated contributions: 5.5% a year of the amount due, up to 3 times the amount (Law Art 155, Reg Art 117). Administrative fine OMR 10 per 30 days late for notices, capped at OMR 3,000. False data: prison 10 days to 1 year and/or OMR 100-1,000. |
| Leave | Sick leave: the employer pays the first 7 days; the Fund pays from day 8. Maternity 98 days, paternity 7 days at 100% of the last wage. |
| Savings scheme | Employer pays 9% of the monthly basic wage for non-Omani employees. Start date set by the Fund board, no later than 19 July 2027. Service before that date is settled under the Labour Law. |
Labour Law
| Rule | Detail |
|---|---|
| Law | Royal Decree 53/2023 (Articles 1-144 read; Article 145 onward not reviewed). |
| Working time | 8 hours a day, 40 a week. 6 hours a day in Ramadan for Muslim workers. Overtime at most 12 total hours a day. |
| Overtime | Basic hourly wage plus at least 25% (day) or 50% (night). Rest days and holidays: 100% plus the day's wage or a day off. |
| Annual leave | 30 days at gross wage after 6 months. Carry-over up to 30 days. Unused days paid at gross wage (Art 81). |
| Sick leave | Up to 182 days: days 1-21 at 100%, 22-35 at 75%, 36-70 at 50%, 71-182 at 35% of gross wage. |
| Probation and notice | Probation up to 3 months (monthly-paid) or 2 months. Notice 30 days (monthly-paid) or 15 days. |
| Gratuity (non-Omani) | At least one basic wage per year of service, pro-rated, on the last basic wage, until the savings scheme starts. |
| Wages | In Omani rials, into a bank account, within 3 days after the pay period. Everything due is paid at termination (within 7 days if the worker absconds). |
| Deductions | Up to 25% of the monthly wage for damage. Up to one fourth for maintenance debt or amounts owed to the government or employer. |
| Minimum wage (Omanis) | OMR 325 a month (Ministerial Order 222/2013). A review has been under way since January 2026. |
| Annual increment (Omanis) | Decision 317/2025, from 1 January 2026: 5% excellent, 4% very good, 3% good, 2% acceptable, 0% weak, on the basic wage, for workers with 6 months of service. |
| Worker files | Kept at least 1 year after service ends. |
Wage Protection System
| Rule | Detail |
|---|---|
| Law | Ministerial Decision 729/2024, in force 16 December 2024. Replaces Decision 299/2023. |
| Obligation | Pay wages to a bank account through WPS within 3 days after the pay period, in the amount of the contract. |
| Exemptions | Labour dispute or suspension over 30 days, a registered absconding report after 30 days, a new worker under 30 days, a worker on unpaid leave. |
| Sanctions | Warning, suspension of the work-permit service, and an administrative fine of OMR 50 per worker, doubled on repeat. |
| File | CSV, unified format agreed with the Central Bank of Oman. File name SIF_(commercial registration)_(bank short name)_(date)_(sequence).csv. One file per month and per payment type. |
| Salary frequency | Only B (every two weeks) or M (monthly), from the Ministry's specification. |
Accounting and company law
| Rule | Detail |
|---|---|
| Companies | Commercial Companies Law, Royal Decree 18/2019. |
| Standards | IFRS for accounts. The tax law asks for IFRS or an approved equivalent on an accrual basis. |
| Audit | No official page lists which companies must be audited. In practice, a 15% taxpayer attaches audited accounts to the return. |
| Regulator | Royal Decree 20/2024 moved regulation of accountants and auditors to the Financial Services Authority. |
| Retention | Tax 10 years. VAT 10 years (15 for real estate). |
| Beneficial ownership | Declaration under Ministerial Decision 424/2023. |
Web pages that claim 2026 audit rule changes (for example a six-month filing deadline or audits for all LLCs) cite no source. They are not used here.
Compliance calendar
| When | Obligation |
|---|---|
| Quarterly, 30 days after the quarter | VAT return and payment. Excise return if applicable. |
| Monthly, by the 14th | Withholding tax on payments to non-residents. |
| Monthly, by the 15th | Social Protection Fund contributions. |
| Within 3 days after the pay period | Wages through WPS. |
| Within 3 months of the year end | Income tax return, 3% regime. |
| Within 4 months of the year end | Income tax return and payment with audited accounts, 15% taxpayers. |
| 1 January 2027 | Decision 180/2026 expense conditions apply. |
| 1 April 2027 / 1 October 2027 | Mandatory e-invoicing, by size. |
| By 19 July 2027 | Savings scheme for non-Omani employees. |
| 1 January 2028 | Personal income tax with employer withholding. |
| 19 July 2028 | Work-injury insurance for non-Omani workers. |
Where each rule lives in Odoo
| Rule | Where |
|---|---|
| VAT rates and boxes | Taxes (not to be changed). VAT in Odoo |
| Zero-rated goods | Zero-rated tariff codes. VAT in Odoo |
| Fund rates, savings scheme, gratuity, sick pay, deduction limit | Oman parameters. Oman Parameters |
| Weekend | Portal setting, Friday and Saturday. |
| Public holidays | Marked by the customer in portal HR, Holidays. |
| Depreciation lives | Asset profiles (Invoicing > Configuration > Asset Profiles). |
| Returns and deadlines | Portal Reports, Statutory Filings. |