Guide

Exporting to Oman

Taxes, duty and legal considerations when exporting to Oman

There are a lot of things to consider before you start exporting to Oman.

It's essential to find out about local rules and regulations on tax and duty in your intended market.

Start-up considerations

A long term approach and focus on relationship building are essential for successful market penetration and for sustaining market share.

Local partnerships or agents often play a crucial role in product promotion and marketing in this market. The success of a product, in many cases, will depend on the local agent.

Most large contractors have either in-house sourcing ability, or an associate trading company dealing in supplies and equipment that complement their activity.

To establish your business in Oman you need to be represented locally by someone at the level of decision maker. The options include:

  • branch office, which is only applicable for contracts with Omani government or quasi-government entities
  • Commercial Representative Office (CRO)
  • Commercial Agency Limited Liability Company (LLC)

Commercial agents

Commercial agencies are governed by the Commercial Agencies Law (Royal Decree 26/1977). An Omani agent supplies goods or services in Oman on behalf of a foreign principal which does not have a registered entity in Oman. Agency agreements:

  • must be registered with the Ministry of Commerce and Industry (MoCI)
  • can be difficult to terminate, even if it is a fixed term agreement
  • are often weighted in favour of the agent

Oman Courts generally award 2 to 3 years net profits as compensation for wrongful termination or unjustified failure to renew an agreement.

Legal considerations

Standards and technical regulations

The Directorate General of Standards and Specifications at the MoCI has responsibility for standards. British, US, Japanese and European standards are usually well accepted because local production is limited.

Agents, importers or cargo companies can provide guidance and advice about labelling and packaging regulations.

Intellectual property

The Patents and Trade Marks Directorate oversees IP related issues.

Enforcement of Intellectual Property Rights (IPR) can be poor. However, challenges can often be successful.

Read more about protecting your intellectual property overseas.

Tax and customs considerations

The UK and Oman have signed a double taxation agreement. The Ministry of Finance oversees this sector.

Value Added Tax (VAT)

VAT is not charged locally.

Corporate tax

A 12 per cent uniform tax rate is applied to all types of tax payers.

Taxpayers include sole proprietorships, companies registered in Oman and permanent establishments of foreign companies.

A withholding tax of 10 per cent is levied on certain types of payments.

Income tax

There is no personal income tax in Oman.

Customs

The Royal Oman Police (ROP) is responsible for all customs related matters.

Most products are subject to a 5 per cent duty. However, some products such as alcohol, cigarettes and pork products attract a higher rate.

You can find more about import tariffs in the Market Access Database.

Documentation

Importers, banks, the Arab British Chamber of Commerce as well as the Oman Embassy in London can provide information on required documentation.

Entry requirements

You need a visa to enter Oman.

You can apply for a 14 day short visit visa on arrival at Seeb International Airport or in advance at the Omani Embassy in London.