Source: https://rivet.global/blog/oman-companies-paying-foreign-providers-withholding
Published: 2026-10-11 · Updated: 2026-10-11 · By Rashidatou K.

# Omani companies paying foreign providers: the 10 percent withholding tax

Oman applies 10 percent withholding tax to certain payments to foreign companies without a permanent establishment. Which payments are covered, filing and treaty relief.

## Key takeaways

- Oman withholds tax at 10 percent on certain payments to foreign companies without a permanent establishment in Oman.
- Covered payments include royalties, consideration for research and development, use of computer software, and management fees, among others in the law.
- The payer withholds, files and pays the tax to the Tax Authority within 14 days after the end of the month of payment.
- Tax treaties can reduce the rate with the right documentation.

A Muscat logistics company licenses fleet management software from an Irish vendor for OMR 22,000 a year. The vendor has no office in Oman. The payment counts as consideration for the use of computer software, so the Omani company withholds 10 percent, files the return and pays the Tax Authority within 14 days after the month ends.

## The withholding rule

Oman's income tax law requires withholding at 10 percent on certain payments to foreign companies that have no permanent establishment in Oman, or whose income is not connected to one. Covered payments include:

- royalties,
- consideration for research and development,
- consideration for the use or right to use computer software,
- management fees,
- and other categories the law adds, such as dividends and interest under specific rules.

## Filing

The payer withholds the tax from the gross payment, files the return and pays the Tax Authority within 14 days after the end of the month of payment. The payer is responsible if the tax is not withheld.

## Treaties

Oman has double taxation agreements that can reduce withholding. Obtain the provider's certificate of tax residence and follow the Tax Authority's procedure.

## Contracts

Foreign vendors often quote net of withholding. If the Omani company agrees to gross up, it bears the 10 percent on top. Settle this in the contract.

## Where Rivet fits

Rivet does not file Omani withholding tax. A Rivet business account accepts registered companies after verification, including Omani companies, subject to local rules, and pays providers in 120+ countries with each payment matched to its invoice. Rivet is not a bank; regulated partner institutions hold the funds.

## Questions

### Which payments carry withholding tax in Oman?

Royalties, consideration for research and development, use or right to use computer software, management fees, and other categories listed in the income tax law, including dividends and interest under rules introduced over time.

### What is the rate?

10 percent on the gross amount, subject to treaty relief.

### When must the tax be paid?

Within 14 days after the end of the month in which the payment was made or credited.

### How do I apply treaty relief?

Obtain the provider's tax residence certificate and follow the Tax Authority's procedure for applying treaty rates.