Discusses pricing formula and other fees, value-added tax (VAT), etc.
Last Published: 11/20/2018

The pricing formula for a product in Oman involves the cost of production, which includes raw materials and labor, distribution, promotion and advertising, taxes, and customs. Taxes usually are assessed on corporate profits, and Oman is expected to implement a value added tax (VAT) sometime in 2019. Most international restaurants in Oman charge municipality and tourism taxes in their invoices, and landlords pay a lease tax to the municipality. Companies also are assessed labor-related taxes upon issuance of a work visa.

Royal Decree 9/2017, issued in February 2017, introduced a number of changes to taxes, with increases in corporate tax from 12 percent to 15 percent while withdrawing many exemptions. Tax exemptions are available to entities in the manufacturing, mining, agriculture, fisheries, tourism, education, and health care sectors. Exemptions are granted for an initial five year period from the date of commencement of business. A five year extension is available.
 

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