Here are some things to know about Oman Finances. The budget surplus in Q1 2022, the Corporate income tax rate, the Economic diversification plan and the Oil-and-Gas economy are all discussed. These factors will be crucial in determining the future of Oman. Here are some tips to get started. Read on! You can become an expert in Oman Finances in just a few days! In the next section, you’ll discover how to invest in Oman.
Budget surplus for Q1 2022
The Ministry of Finance of Oman has announced that the first quarter of the country’s current budget has a surplus of RO 357 million. The surplus funds will be used to stimulate the economy, fund development projects, and lower debt levels. The total revenues for Q1 2022 were 3.03 billion Omani rials and expenditures increased by 3.8 percent to 1.82 billion Omani rials. The figures were driven by robust oil revenues.
The Sultanate of Oman has announced a budget surplus of $923 million for the first quarter of 2022. This is the largest budget surplus since the first quarter of 2014. Oil exporters in the region are all posting record budget surpluses, and Oman’s move into the black is particularly significant. In the previous period, when oil prices averaged $100 a barrel, the Sultanate struggled to achieve budget surpluses.
Corporate income tax rate
The corporate income tax rate in Oman is 12%. There is no withholding tax on dividends or interest. However, foreign companies without PE in Oman are subject to a 10% withholding tax on gross royalties. This tax is collected from the payer and remitted to the tax authorities. The definition of royalties is broad and includes payments for intellectual property rights, including patents, trademarks, drawings and licenses.
The tax law was amended by royal decree on 19 February 2017, which was published in the official gazette the following day. The amendments introduced a lower tax rate for qualifying companies. They also expanded the types of payments subject to withholding tax. The basic rate of tax for a company in Oman is 5%. However, if your company earns less than OMR 100,000 a year, it will be exempt from the tax.
The oil-and-gas-based economy of Oman is vital to the country’s economy, but the industry is also highly vulnerable to low oil prices. In 2017, Oman’s government budget was projected to generate OMR 8.64 billion (USD 22.4 billion) in revenue, based on an average oil price of USD 45 per barrel. The oil-and-gas sector accounts for more than half of government revenue, which is expected to fall to 72% in 2018.
The oil and gas-based economy of Oman is driven by the Sultanate’s desire to diversify its economy. The country’s government has set a goal to produce 1 million barrels of oil a day by the end of 2017, putting the country on track to achieve that goal. The country is also working to boost its economy through greater investments and privatization, with government-owned companies being sold and the stock market expanding.
Economic diversification plan
Oman’s economic diversification plan aims to reduce the dependence on oil while increasing the contribution of other sectors. The plan also focuses on non-oil sectors with high technological content, such as manufacturing and logistics. Despite these positive developments, the country still relies on oil to generate 35 percent of its GDP. The government has set goals to increase the contribution of these sectors to the country’s GDP by 2020.
A key component of diversification for Oman is education, as many Omanis do not have the technical knowledge to start certain industries. But according to Marcus Chenevix, an economics consultant based in London, Oman’s diversification plans can be quite ambitious. He believes the country has huge potential to diversify but is limited by a lack of institutional memory. Moreover, the lack of technological training for many Omanis may pose a problem in the long run.