Article 40 defines the tax scope for non-resident persons in Oman. Tax is charged on specific categories of income (defined in Article 52) accruing in Oman to non-residents who either: (1) do not have a permanent establishment (PE) in Oman, or (2) have a PE, but the specific income paid or credited to them is not considered part of that PE's gross income. This ensures that certain Omani-sourced payments, such as royalties or management fees, are taxed at the source when they do not fall under the standard corporate assessment of a local branch.
Part 3 - Chargeability to Tax
Chapter 1 - Taxable Income and Taxpayers
Section 2 - Taxpayers
Article 40
[GTL Notes: Taxation of Non-Residents]
Tax shall be charged on the income accruing in Oman from the categories specified in Article 52 of this Law, and with due regard to the provisions of Section Five of this Chapter, on a non-resident person who does not carry on business in Oman through a permanent establishment situated therein, or that such person carrying on business in Oman through a permanent establishment does not consider the gross income paid or credited in the accounts and subject to tax in accordance with the provisions of Article 52 of this Law as part of the gross income of that permanent establishment.
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