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BASIC COUNTRY FACTS

Sultanate of Oman

Muscat

  • Arabic

4.829 million

Omani rial

.om

+968

Omani rial

STATUTORY LABOR REQUIREMENTS

Probation Period

  • Probationary periods of up to three months are permitted.

Annual Leave

  • After completing six months of service, employees are generally entitled to 30 calendar days of paid annual leave, which may be taken in parts.

Public Holidays

  1. Sultan Qaboos Mourning Day (12th to 14th January)
  2. Prophet's Ascension
  3. Eid al-Fitr
  4. Renaissance Day (23rd July)
  5. Eid al-Adha
  6. Islamic New Year
  7. Prophet's Birthday
  8. Oman National Day (18th November)

Maternity Leave

  • Female employees are generally entitled to 50 days of paid maternity leave.

Paternity Leave

  • There is no statutory paternity leave in Oman

Sick Leave

  • In general, employees are entitled to 10 weeks of sick leave per year. 
  • Sick leave is usually paid as follows:
    • First two weeks of leave: 100% of wages
    • 3rd and 4th weeks of leave: 75% of wages
    • 5th and 6th weeks of leave: 50% of wages
    • 7th through 10th weeks of leave: 25% of wages

Work Hours

  • The work week is generally between 40 and 48 hours long, although it may be reduced during Ramadan.

Overtime

  • If the employee is required to work more than the working hours specified by Article 68, the employer shall pay the employee an overtime equal to the basic salary, according to the working hours, as well as 25 per cent extra payments for the overtime during the day and 50 per cent extra payment for overtime at night

Notice Period

  • Employees working under a fixed term contract should be given 30 days’ notice if there is no intention to renew the contract, along with the reason for non-renewal. 
  • Failure to provide notice may result in a lawsuit by the employee.
  • Employees working under indefinite term contracts are also entitled to 30 days’ notice of termination. Such termination should be for “reasonable and fair” cause with documentation.

Severance

  • At the end of a contract, employees are generally eligible for an indemnity payment. 
  • This is usually paid as follows:
    • Up to three years of employment: 15 days’ pay per year worked
    • More than three years of employment: one month’s salary per year worked.

13th Month Salary in Brazil

  • No
  • There is no statutory requirement to pay the 13th or the 14th month salary.
  • However, employees are entitled to 30 days leave after working for 6 months.

INCOME TAX

There is currently no personal income tax (PIT) law enacted in Oman.

DEDUCTIBLE EXPENSES

  • There is currently no PIT law enacted in Oman.
  • Hence, there are no deductible expenses

IMMIGRATION

Employment visas

  • Employers must obtain employment visas for their expatriate employees aged 21 or older to enter Oman. 
  • The application process requires a labor clearance from the Ministry of Manpower. 
  • The ministry reviews the labor clearance request from the employer and considers whether the position meets with approval criteria, which includes the level of Omanization (nationalization) achieved or planned. 
  • The duration of employment visas is limited to two years from the date of entry. 
  • Applicants may not work in Oman until all papers are completely processed. 
  • The employment visa must be used within three months after the date of its issuance.
  • Individuals holding employment visas in Oman must not stay outside Oman for more than six months. 
  • However, this rule does not apply to family members of employment visa holders. 

Resident cards

  • Expatriates on work visas in Oman must have a resident card which is issued by the Directorate General of Civil Status. 
  • This card must be obtained within 30 days after entry into Oman. 
  • The card is valid for two years from the date of issuance. 
  • It is possible to change employers after an applicant has received a resident card. 
  • However, the initial employer must provide a letter stating no objection to the change.
  • Otherwise, the expatriate must leave the country after canceling his or her previous employment visa. 

Investors’ visas

  • Foreign nationals may obtain investors’ visas under certain circumstances. 
  • The investor or the investor’s partner must obtain the approval of the investment from the Ministry of Commerce and Industry. 
  • Investors’ visas are valid for a period of two years. 

Owners’ visas

  • Owners’ visas are granted to foreigners who own a unit built in an integrated tourism complex in Oman. 
  • These visas are issued to two natural persons representing the owner if the owner is a juristic person. 
  • Owners’ visas must be used within six months after the date of their issuance. 
  • They can be issued without a sponsor. 
  • A joint owner’s visa is also issued to the spouse of the holder of an owner’s visa. 
  • The fee for an owner’s visa is OMR50.

Type of Visa/Permit

Documentation

Validity

Eligibility

Employment Visa
  • A copy of each employee’s passport with at least six months’ validity
  • A copy of the Labor License issued by the Ministry of Manpower for each application form
  • The letter of invitation or job offer from a registered company in the Sultanate
  • An attested medical certificate issued by an approved clinic for employees in certain countries (India, Pakistan, Philippines, Bangladesh, etc.)
  • Two recent passport photographs
  • Any relevant proof of qualifications or education

2 years
  • Employers must obtain employment visas for their expatriate employees aged 21 or older to enter Oman

Resident Cards
  • Two recent passport photographs
  • Original passport
  • Copy of the passport

2 years
  • Expatriates on work visas in Oman must have a resident card which is issued by the Directorate General of Civil Status. 

Investor’s Visa
  • Two photographs size (4X6) cm.
  • Copy of the investor’s passport provided it is valid for a period not less than six months.
  • The original partnership certificate issued by the Ministry of Commerce and Industry and copy of the same certificate.
  • The labor permit issued by the Ministry of Manpower, to be stamped with an investor stamp.
  • Copy of the specimen signature of the authorized signatories issued by the Ministry of Commerce and Industry.
  • Copy of valid certificate of membership of Oman’s Chamber of Commerce and Industry, accompanied by a copy of the valid commercial registration.
  • A medical fitness certificate issued for citizens of some countries specified as follows by the Ministry of Health (India, Pakistan, Philippines, Bangladesh, Indonesia, Sri Lanka, Egypt, Syria, Sudan, Ethiopia); certificate must be endorsed by the Ministry of Health.

2 years
  • Foreign nationals may obtain investors’ visas under certain circumstances. 
  • The investor or the investor’s partner must obtain the approval of the investment from the Ministry of Commerce and Industry. 

Owners Visa
  • Copy of title deed and survey sketch of the land unit.
  • A letter from the promoter of integrated tourism complex denoting that the visa applicant is owner of construction completed land unit and such letter to be attested by the Ministry of Tourism.
  • Copy of the applicant's passport valid for three months at least.
  • Medical check certificate confirming that the applicant is free of contagious diseases (applicable to citizens of countries subjected to such medical check).
  • Two personal photographs for the visa applicant.
  • Copy each, of commercial register documents for nominal entities, attached with a letter from the company requesting issue of residency to personnel authorized by the company.

6 months (can be renewed)
  • Owners’ visas are granted to foreigners who own a unit built in an integrated tourism complex in Oman. 
  • These visas are issued to two natural persons representing the owner if the owner is a juristic person. 

VALUE ADDED TAX

  • There is currently no value-added tax (VAT)/sales tax in Oman.

WITHHOLDING TAX

Dividends

  • A 10% withholding tax applies to dividends on shares distributed by joint stock companies and investment bond dividends distributed by investment funds to foreign companies without a PE in Oman.

Interest

  • A 10% withholding tax applies on interest paid to foreign companies without a PE in Oman, with certain exceptions.

Royalties

  • Foreign companies without a PE in Oman that derive Omani-source royalties are subject to a 10% withholding tax on the gross royalty amount

Fees for Technical Services

  • A 10% withholding tax applies on the gross amount of technical service fees paid to a foreign company without a PE in Oman, if the services are provided wholly or partly in Oman

WHT

Dividends

10%

Interest

10%

Royalties

10%

Technical Service Fees

10%

TERMINATION

  • Termination under Oman's Labor Law can only be made under specific exclusive grounds., such as grave violations of the terms of the employment contract, unauthorized absence for ten (10) consecutive day or health conditions which prevent the employee from doing his work. 
  • Force Majeure does not apply as a principle to employment contracts and employers are not permitted to unilaterally terminate an employment contract unless for the reasons and grounds provided in the Labor Law.
  • Employees working under a fixed term contract should be given 30 days’ notice if there is no intention to renew the contract, along with the reason for non-renewal. 
  • Failure to provide notice may result in a lawsuit by the employee.
  • Employees working under indefinite term contracts are also entitled to 30 days’ notice of termination. Such termination should be for “reasonable and fair” cause with documentation.
  • At the end of a contract, employees are generally eligible for an indemnity payment. 
  • This is usually paid as follows:
    • Up to three years of employment: 15 days’ pay per year worked
    • More than three years of employment: one month’s salary per year worked.

STATUTORY BENEFITS

  • These are mandatory benefits as postulated by law
  • These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay
  • Statutory benefits also include social security benefits

Statutory Benefits

Probationary Period

Annual Leave

Public Holidays

Maternity Leave

Sick Leave

Overtime Pay

Notice Period

Severance Pay

Social Security Benefits

PAYMENTS AND INVOICING

  • There is currently no PIT law enacted in Oman. 
  • Accordingly, individuals are not required to file PIT returns in Oman.

EASE OF DOING BUSINESS

  • The ease of doing business index is an index created by Simeon Djankov, an economist at the Central and Eastern Europe sector of the World Bank Group.
  • Higher rankings (a low numerical value) indicate better, usually simpler, regulations for businesses and stronger protections of property rights.
  • According to the World Bank Oman ranked 68th in the World in 2019 in terms of ease of doing business.

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