Oman Investment Income Guide 2026

Individuals — 0% on All Investment Income

Individual investors in Oman pay zero tax on all forms of investment income:

• Dividends: Dividends from Omani companies (listed on Muscat Stock Exchange or unlisted) and foreign dividends received by individuals are entirely tax-free
• Interest: Bank interest on savings accounts, fixed deposits, bonds, and sukuk is tax-free for individuals. A resident with OMR 500,000 in fixed deposits earning 5% (OMR 25,000/year in interest) pays OMR 0 in tax
• Capital gains: Gains on sale of shares, bonds, crypto, and other investments by individuals are 0% (see Capital Gains guide)

Companies — Investment Income at 15% CIT

For corporate entities, investment income (dividends, interest, capital gains) is included in ordinary taxable income and taxed at the standard CIT rate of 15%. There is no participation exemption for dividends received from other Omani companies, though some exemptions may apply under double tax treaties for foreign dividends. Interest income on corporate bank deposits and bond holdings is fully taxable.

Example: An Omani holding company earns OMR 50,000 in dividends from a subsidiary and OMR 20,000 in interest on corporate deposits. Both amounts are added to taxable income. If total profit is OMR 200,000, CIT at 15% = OMR 30,000.

Withholding Tax (WHT) on Investment Income

Oman imposes a 10% withholding tax on the following payments to non-residents:

• Dividends paid by Omani companies to non-resident shareholders
• Interest paid by Omani entities to non-residents
• Royalties paid to non-residents for use of intellectual property in Oman
• Management fees paid to non-residents

WHT rates may be reduced under applicable double tax treaties (Oman has over 30 DTTs including India, France, UK, Germany, and other major economies). The reduced rate must be applied for in advance through the GTA.

Example: A UK resident receives OMR 10,000 in dividends from an Omani SAOG. Standard WHT is 10% (OMR 1,000). Under the Oman-UK DTT, the rate may be reduced to 5% or 0% depending on shareholding and treaty provisions.

No Tax Treaty for Individuals

Since individuals pay 0% on all investment income in Oman, double tax treaties are irrelevant for inbound individual investors. For outbound investment, individuals receiving foreign dividends or interest report nothing in Oman (0% rate). WHT suffered abroad (e.g. 15% US dividend WHT) may be reclaimable from the source country under applicable treaty, but no Omani tax credit is available (as no Omani tax is payable).