Oman - Special considerations for short-term assignments

Special considerations for short-term assignments

Taxation of international executives

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Residency rules

Are there special residency considerations for short-term assignments?

There are no resident requirements for short term assignments, which are usually covered by the appropriate Business Visa. For medium or long term assignments, labour clearance will be required and the appropriate Visa obtained, together with a Resident card. 

Payroll considerations

Are there special payroll considerations for short-term assignments?

Oman does not have income tax so income tax withholding does not apply for individuals.

Pension requirements and contributions

Employers are required to pay a social security premium equal to 18.5 percent of the salaries of its Omani employees only (not expatriates). Of this amount, 7 percent is recoverable from the Omani employees. The resultant 11.5 percent payable by an employer represents an amount equal to 10.5 percent of the monthly salaries of their Omani employees for social security (covering old age, disability and death); and 1 percent of the monthly salaries for industrial illnesses and injuries. The contributions are required for Omani employees between the ages of 15 and 59 who are permanently employed in the private sector. A unified system of insurance protection coverage is in effect for Gulf Cooperation Council (GCC) citizens working in other GCC countries.

Taxable income

What income will be taxed during short-term assignments?

None for individuals.

Additional considerations

Are there any additional considerations that should be considered before initiating a short-term assignment in Oman?

There are no personal income tax implications for individuals in Oman, however, if an individual works for over 90 days in Oman, on the business of his/her overseas company and that company does not have a permanent establishment (PE) in Oman, then, a PE could arise by virtue of the employees presence in Oman over 90 days i.e. he or she could create a ‘service’ PE of the overseas company in Oman.

© 2016 KPMG, an Oman member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( “KPMG International”) A Swiss entity. KPMG and the KPMG logo are registered trademarks of KPMG International. KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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