VAT-Ready ERP Software for Oman

Oman is now rolling out mandatory e-invoicing under its Fawtara program. The OTA became an accredited Peppol Authority in January 2026 and published the PINT OM technical specification, Oman's localization of the international Peppol invoice standard, through OpenPeppol in April 2026. A pilot phase launched in August 2026 covering roughly 100 large taxpayers already notified by the OTA. Phase 1 goes live from April 1, 2027 for businesses with annual supplies above OMR 5 million, and Phase 2 follows from October 1, 2027 for businesses below that threshold. Invoices must be issued in XML (UBL 2.1) or PDF/A-3 format through an accredited Peppol Service Provider, and every B2C invoice requires a mandatory QR code with an embedded Seller UUID. Businesses outside the initial pilot group can already connect voluntarily. Yukti is building Peppol-based Fawtara integration ahead of the phased 2027 mandate.

Oman levies corporate income tax at a standard rate of 15% on taxable income above OMR 30,000. Qualifying small Omani proprietorships and limited liability companies, those with registered capital not exceeding OMR 60,000, gross income not exceeding OMR 150,000, and an average of no more than 25 employees, can claim a reduced 3% rate. Oman also levies excise tax on specific goods categories: tobacco products, alcoholic beverages, pork products, and energy drinks are taxed at 100%, while carbonated drinks and other sugar-sweetened beverages are taxed at 50%, with digital tax stamps required on many excise goods to verify duty payment at the point of sale. Yukti applies the correct corporate tax rate based on company size and calculates excise tax by product category for businesses that import or distribute excisable goods.

Oman payroll runs through the Social Protection Fund (SPF), which replaced the former Public Authority for Social Insurance (PASI) on July 1, 2023. Omani national employees contribute 8% of gross salary (7.5% for old-age, disability, and death insurance plus 0.5% for the job security fund), while employers contribute 14.5%. Expatriate employees are not yet covered by SPF pension contributions; instead, Oman's Labour Law (Royal Decree 53/2023) entitles them to an end-of-service gratuity of one month's basic salary per completed year of service, payable on termination. Yukti calculates SPF contributions for Omani staff and accrues end-of-service gratuity liability for expatriate employees automatically. Sector-specific Omanization quotas, enforced by the Ministry of Labour and ranging from roughly a third of the workforce in retail to the large majority of customer-facing roles in banking and insurance, determine work permit costs under a tiered fee structure that discounts compliant employers and doubles fees for those who fall short. Yukti's HR module tracks nationality ratios against sector quotas so businesses can monitor Omanization compliance before it affects work permit renewals.