The Omani government has now introduced broad tax changes to the income tax law. The changes have been the subject of intense speculation for many months, and are aimed at increasing tax revenue, improving tax administration, and stimulating small business activity. Consistent with expectations, the corporate tax rate is increasing to 15%, from 12%. Another notable change is the extension of withholding tax to dividends, interest, and payments for services. These changes become effective from the date of publication in the Official Gazette (i.e. 27 February 2017). Companies operating in Oman are encouraged to consider their impact.

The Omani government has now introduced broad tax changes to the income tax law. The changes have been the subject of intense speculation for many months, and are aimed at increasing tax revenue, improving tax administration, and stimulating small business activity. Consistent with expectations, th...