Odoo accounting and tax in Oman

VAT is 5%. Registration is mandatory once annual supplies reach OMR 38,500 and voluntary from OMR 19,250.

VAT returns are quarterly. The return and the payment are both due 30 days after the end of the quarter. Late payment carries additional tax of 1% per month, and late filing an administrative penalty of OMR 500 to OMR 5,000.

Withholding tax is 10% on royalties, research and development fees, software use rights, management fees and services paid to a foreign company with no permanent establishment in Oman. It must be withheld and remitted within 14 days from the end of the month in which the amount was paid or credited, whichever is earlier. Since 1 March 2018 service WHT applies whether the service is performed inside or outside Oman.

Withholding tax on dividends and interest paid to non-resident investors has been suspended since a Royal Directive of 11 January 2023. WHT on leasing ships, aircraft and aircraft engines has been suspended since 29 December 2022.

Corporate income tax is 15%. A 3% rate applies to a qualifying small Omani proprietorship or LLC with registered capital of OMR 60,000 or less at the start of the tax year, gross income of OMR 150,000 or less, and an average of 25 employees or fewer. Petroleum companies are taxed at 55%.

Personal income tax arrives on 1 January 2028 under Royal Decree 56/2025: 5% of taxable income for individuals whose total annual income exceeds OMR 42,000. Payroll withholding logic will be needed before that date.

IFRS as issued by the IASB is required, with no local modifications and no accounting policy options removed. For listed issuers the hook is Article 282 of the Executive Regulation of the Capital Market Law (Royal Decree 80/1998). The IFRS for SMEs standard has not been adopted in Oman.

The annual income tax return is due within four months of the financial year end and must be accompanied by audited accounts signed by an auditor registered in Oman. SME taxpayers on the 3% rate may instead file a simplified income statement within three months of year end.

Accounting records and supporting documents must be kept for ten years after the end of the accounting period they relate to. That drives archive and attachment retention design in Odoo, not just the ledger.

Invoices and related documents commonly need Arabic alongside English. Odoo covers this through l10n_gcc_invoice, which adds Arabic as a secondary language on invoices, credit notes, debit notes, vendor bills and refund bills.