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Tax Guide for U.S. Expats in Oman

Oman income tax is not imposed on individuals, making it attractive for U.S. expats in Oman. However, American citizens must still file U.S. tax returns and report foreign accounts to the IRS to remain compliant.

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U.S. Expat Tax Deadline

15th June

Expat Tax Deadline

For U.S. expats, the automatic tax filing extension deadline is June 16th in 2025. If more time is needed, filing Form 4868 before this date extends the deadline to October 15th. The FBAR must also be submitted by October 15th. Certain special cases may qualify for an additional extension until December 15th.

Oman

Understanding Taxes for U.S. Expats in Oman

While Income tax in Oman for expats is not imposed, U.S. expats in Oman must still fulfill IRS tax obligations. This includes filing a U.S. tax return, reporting foreign assets, and considering tax benefits like the Foreign Earned Income Exclusion (FEIE).

Taxation

U.S. Federal Tax Return (Form 1040)

All U.S. expats in Oman must report worldwide income annually.

Foreign Bank Account Report (FBAR)

If foreign accounts exceed $10,000, FinCEN Form 114 must be filed.

Foreign Earned Income Exclusion (FEIE)

Expats in Oman may exclude up to $126,500 (2024) in foreign-earned income using Form 2555.

Foreign Tax Credit (FTC)

As Oman does not have income tax, FEIE is the preferred tax relief method.

Self-Employment Tax

U.S. expats working for themselves in Oman must pay U.S. self-employment tax.

State Tax Obligations

Some U.S. states require tax filing unless residency is officially terminated.

Corporate Tax in Oman

Foreign businesses operating in Oman face a 15% corporate tax.

No U.S.-Oman Tax Treaty

The U.S. and Oman do not have a tax treaty, meaning standard U.S. tax laws apply.

No VAT or Sales Tax

Oman does not currently impose VAT or general sales tax.

Key Tax Insights

Important Facts for U.S. Expats in Oman

Oman’s tax system does not include personal income tax, but U.S. expats in Oman must still comply with IRS rules. Below are key points:

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No Personal Income Tax

U.S. expats taxes in oman for us citizens do not have to pay taxes to Oman.

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U.S. Tax Filing Required

Americans must report foreign income to the IRS.

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Corporate Taxes Apply

Foreign-owned businesses in Oman pay a 15% corporate tax.

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    FAQs

    We Have All Your Queries Covered

    Have questions about your U.S. expat state taxes? We’re here to help. Below are answers to some common queries we encounter from expats around the world.

    Do U.S. expats in Oman pay income tax?

    No, Oman does not have personal income tax, but U.S. expats must file U.S. tax returns.

    Yes, all U.S. expats in Oman must report foreign-earned income to the IRS annually.

    No, Oman and the U.S. do not have a tax treaty, so standard U.S. tax laws apply.

    Yes, if foreign financial accounts exceed $10,000, FBAR filing is required.

    Yes, foreign businesses operating in Oman are subject to a 15% corporate tax.

    Currently, Oman does not have VAT or sales tax, but tax policies may change.

    Still have questions? Contact us today to get expert guidance on all your U.S. expat state taxes.

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