Withholding Tax Services

In the Sultanate of Oman, certain categories of income realized by foreign residents who do not possess a permanent establishment are subject to a tax known as withholding tax. This tax is applied to the following types of income :

  • Royalties.
  • Consideration for conducting research and development.
  • Consideration for the use or licensing of computer software.
  • Fees for management or performance of services.
  • Dividends on shares or interests.

According to the regulations, any taxpayer, ministry, organization, public institution, public legal entity, or administrative unit of the State is required to withhold 10% of the total amount paid or credited for the aforementioned income categories. The withholding tax amount is then submitted to the Tax Authority within a period not exceeding fourteen days from the end of the month in which the payment or account transaction occurred. The submission of withholding tax returns is facilitated through the Tax portal, utilizing a designated form provided for this purpose.

A V Savla specializes in providing hassle-free services to clients by assisting them with the withholding tax obligations in accordance with the regulations in Oman. Our services ensure that clients comply with the requirement of withholding 10% of the total amount paid or credited for specific income categories mentioned earlier.

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