Employment Cost Calculator for Oman
Calculate the total cost of employing someone in Oman, including taxes, benefits, and our management fee.
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Corporate Income Tax (Standard) | 15% | Taxable income |
| Corporate Income Tax (Oil & Gas) | 55% | Income from oil and gas sales |
| Social Security (Omani employees) | 11.5% - 12.5% | Monthly gross salary (up to OMR 3,000) |
| Withholding Tax (non-residents without PE) | 10% | Gross income (royalties, management fees, services, etc.) |
Filing & Compliance
- Corporate tax returns are due within six months of the financial year-end. SMEs with a 3% tax rate must file within three months.
- Employers must deduct social security contributions for Omani nationals and remit them to the Social Protection Fund monthly within 15 days of the subsequent month.
- Withholding tax on payments to non-residents (without a Permanent Establishment) must be remitted to the Oman Tax Authority within 14 days from the end of the month in which the payment was made or credited.
In Oman, employee tax deductions primarily involve social security contributions for Omani nationals. Expatriates are exempt from these contributions.
Social Security Contributions
- Employee Contribution: 7% of gross salary for Omani nationals.
- Employer Contribution: 12.5% of the employee's monthly gross salary to the Social Protection Fund (SPF). This is set to increase to 13.5% in July 2024.
- Job Security Fund: 1% of the employee's gross salary (paid by the employer.)
Income Tax
There is no personal income tax in Oman for either Omani nationals or expatriate employees.
Other Deductions
Other permissible deductions include loan repayments agreed upon with the employee and penalties for disciplinary actions, if applicable, according to the employment contract. Wage statements must be provided by the employer detailing salary, deductions, and net pay.
