We are a team of accountants in Oman offering complete services to companies of all sizes. Understanding the requirements and obligations relating to accounting and annual reporting is essential for all business owners. As one of the accounting firms in Oman offering services to both local and foreign entrepreneurs, we are qualified to answer questions about basic accounting rules and complex matters, such as those concerning the taxation of foreign companies.
| Quick Facts | |
|---|---|
| Bookkeeping services in Oman |
– accounts receivable and accounts payable, – reconciling transactions (including bank reconciliation), – balance sheet, – other financial statements |
|
Payroll |
– calculating the salaries and paying the employees, – social security contribution management for the employers in Oman |
|
Invoicing |
– preparing invoices and proforma invoices, – tracking overdue invoices |
| Cash management | Company cash flow management and optimization |
| Reporting |
Our accountants in Oman assist clients with the preparation of the annual financial statements. |
| Financial analysis |
– operational efficiency evaluation, – profitability ratio calculation, – other types of reports and analysis as needed |
| Forensic accounting |
Accounting in cases of fraud or money laundering investigations |
| Tax compliance |
Tax filing and payment for the corporate income tax and other taxes for companies in Oman |
| VAT compliance and reporting |
– VAT registration (mandatory after a certain turnover), – VAT return preparation and submission, – VAT payment |
| Audit services offered by our accountants in Oman | The audit of the annual financial statements, as part of the company’s mandatory annual reporting compliance |
| Property financial matters |
Compliance with the VAT rates for different types of real estate and land transactions |
| Statutory compliance |
Assistance for complete compliance with the IFRS principles that are applicable in Oman |
| Tax authority assistance |
Client representation in front of the Ministry of Finance and the Tax Authority, as needed |
| Support for voluntary dissolution |
Our accountants in Oman can assist clients during the liquidation process, with: the final financial statements, the distribution of assets, and other final financial aspects. |
| Services for foreign companies offered by our accountants in Oman | Information on the taxation of foreign entities, foreign tax relief and other case-by-case issues, as needed |
Accounting covers a wider range of services, starting with bookkeeping and also including the payment of taxes, bank reconciliation, or payroll and billing. However, a team of accountants can provide much more than effective recordkeeping and tax services, as financial advice is often requested from such a team.
Together with our partner lawyers in Oman, we provide investors with complex solutions, tailored to their business needs. Our attorneys can also help you open a company in Oman, no matter its type.
Table of Contents
Services offered by our accountants in Oman
Tax compliance and reporting are essential for any registered business. This is why a core part of our services focuses on accounting and reporting rules.
The solutions offered by our accountants include the following:
- Bookkeeping: preparing and keeping complete records of the company’s transactions, the accounts receivable, and the accounts payable;
- Payroll: there is no payroll tax in Oman, however, our accountants assist in making the salary payments as needed and making the social security contributions (see below);
- Tax compliance: our accountants in Oman will provide companies with the needed services that will allow them to observe the tax filing deadlines;
- Annual reporting: preparing the complete accounting records in accordance with the International Financial Reporting Standards (IFRS).
Our accounting solutions focus on tax compliance, tax preparation, and counseling, as well as the adequate tracking of the company’s earnings. Our clients benefit from accurate financial records, and our team always implements effective recordkeeping systems.
The services listed above are only briefly outlined. If you would like to know more, please reach out to our accountants in Oman.
Accounting principles in Oman
The following general accounting rules and principles apply to Omani companies:
- The Capital Market Authority of Oman, the Central Bank of Oman, and the Tax Authority of Oman are the key authorities in matters concerning taxation and accounting;
- The tax year is generally the calendar year, however, companies can be allowed to use another accounting period;
- The accounting reports include the statement of financial position, the statement of income and that of changes in equity, the cash flow statement, and the notes to the financial statements;
- Special requirements apply in the case of companies that offer securities to the public; these must submit reports to the Capital Market Authority;
- Companies file the tax return together with the audited financial statements within 4 months of the end of the financial year; the due tax is also paid at the same time.
The accounting firms in Oman, including our experts, observe the requirements for set forth by the professional accountancy bodies regarding proper licenses.
Foreign accounting companies are permitted to enter into a partnership with an Omani company for the purpose of providing auditing services.
Our lawyers in Oman can give you more details about the accounting laws in force and the governing principles.
We are one of the accounting firms in Oman that can also provide solutions for branches that are under a special regime in Oman.
Our lawyers in Oman can give you more information about the available business forms, and the manner in which foreign investors can do business here.
Company taxation Oman
Apart from the accounting and reporting principles, companies in Oman are subject to the following main taxes:
- 15% corporate income tax;
- 5% standard value-added tax and a 0% reduced rate;
- the employer’s social security contribution of 10.5% of the monthly salary of the Omani employee and 1% of the monthly wage for industrial illnesses and injuries.
Choosing to work with one of the accounting firms in Oman, such as our own, is recommended for local and foreign investors alike.
Corporate tax compliance in Oman
As far as tax reporting is concerned, businesses incorporated in Oman are subject to the following requirements:
- Companies file a single tax return, and each company files its own return as consolidated ones are not permitted; foreign entities with multiple permanent establishments in Oman will file a tax return that covers all of these establishments;
- Taxpayers need to have a tax card and the number included on this card is stipulated on all financial documents (invoices, correspondence with the tax authorities, agreements, etc.);
- The accounts are commonly maintained in OMR; companies that wish to maintain their accounts in a foreign currency must receive prior approval to do so from the Tax Authority Chairman;
- Companies that fail to submit the income statement to the authorities can be subject to an assessment (performed arbitrarily), as well as penalties.
Companies can be subject to a minimum penalty of OMR 100 and a maximum penalty amount of OMR 2,000 if they fail to submit the statement within the prescribed deadline.
Any late payments are subject to additional fees, usually calculated as 1% of the outstanding amount, per month.
As far as VAT compliance is concerned, companies are expected to register for VAT purposes once they have a taxable turnover over OMR 38,500 in the current month and the 11 months before or in the current month and in the subsequent 11 months.
VAT returns and payments are made quarterly. The return will include essential information, such as the value of the taxable and exempt supplies, the amount of output VAT, recoverable input VAT, and others.
Working with our Oman accountants helps business owners make sure that they understand and comply with the fiscal requirements and that they remain updated with the latest fiscal changes.
Individual taxation in Oman
If you are a foreign investor who also has questions about individual taxation, our team of Omani accountants can help provide you with the correct answers.
One should know that neither residents nor non-residents are subject to income taxes in Oman. Individuals are also exempt from withholding and capital gains taxes.
For taxation purposes, the number of days spent by the person in Oman is essential. One is considered a resident for tax purposes if he spends at least 183 days in Oman in a given calendar year.
Contact our accountants in Oman specializing in tax and corporate matters if you wish to know more about the conditions for doing business here.
No matter the industry in which your company activates, accounting has an important impact on business. These types of services are required both by small and medium companies and large international corporations. Our professional team of accountants will be a trusted partner who will make sure that your company in Oman runs efficiently.
Our team specializes in all matters concerning company creation, taxation, and management. However, foreign investors in Oman will also need to be mindful of the requirements for entering the country and remaining here for medium or long-term purposes, as may be required for them to run their business smoothly. If you have questions about your entry requirements according to nationality, you can also reach out to our team with your questions. We also assist those who are interested in Oman immigration matters.