Oman is an absolute monarchy located on the Arabian Peninsula of the Persian Gulf. Having a strong sense of tourism, Oman comprises an attractive location for companies looking for a presence in the Middle East.
When expanding to Oman it isn’t as easy as choosing an office space and getting to work. You need to hire employees, set up your Oman payroll, and give out benefits when staying compliant. If you need a partner to guide you to expand quickly, Globalization Partners would make a difference with our Oman payroll outsourcing services.
The existing taxation rules
The employees and employers need to worry about the tax in Oman that has the social security contributions. Employers should contribute 10.5% of wages to social security and 1% for industrial illnesses and injuries. Employees need to contribute 7% of their wages to Oman’s social security program.
Being an employer, you’re responsible for paying corporate taxes. When you provide services in Oman for 90 days or within 12 months, you have considered a permanent establishment that pays corporate income taxes. All branches, businesses and permanent establishments need to contribute 15% of their taxable income.
The Oman Payroll Options
Companies have different Oman payroll options to choose from:
The parent company runs its payroll where you can add all your subsidiary’s employees. When this option could streamline the payroll, all employees require separate regulations depending on their location.
When you operate in Oman for years you can set up an internal Oman payroll in your subsidiary. But you’ll need the budget to hire a full HR staff.
The Oman payroll processing company
When you outsource your payroll, you need to choose to work with an Oman payroll processing company. Then you would still be held compliant.
The Globalization Partners
When choosing Oman payroll outsourcing with Globalization Partners it takes care of your payroll and all matters of compliance.
Why You Have to Set up Your Oman Payroll?
The companies expanding to Oman through the traditional route need to establish a subsidiary before they choose an Oman payroll option. The subsidiary setup process ain’t the black and white, and it may take up to a few months to incorporate in the country. But when choosing Globalization Partners you can use our existing Oman subsidiary and start working in a few days. Don’t worry about your payroll, you need to focus on growing your company.
The Entitlement and Termination Terms to Know
When figuring out entitlement and termination terms seems difficult while expanding to a new country. This helps to outline the terms in an employment contract before hiring an employee and adds them to your compliant payroll. Oman gives probationary periods of three months as well as fixed-term contracts. The notice of termination depends on the type of contract, and employees eligible for an indemnity payment.
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