EY-Global-oil-and-gas-tax-guide-2014

406 Oman
In addition, a border toll is levied on all vehicles that cross the Oman border at
any points of entry.
I. Other
Payroll taxes and employee benefits
The Social Security Law (Royal Decree No. 72 of 1991) introduced a system of
social security to insure employees against old age, disability, death and
occupational injuries and diseases. The law currently applies exclusively to
Omanis working in the private sector.
Under the law, private sector employers must make monthly contributions to
the Public Authority for Social Insurance at a rate of 10.5% of each Omani
employee’s monthly wage; employees contribute at a rate of 7% of their
monthly wages. Employers contribute an additional 1% of each Omani
employee’s monthly wage as security against occupational injuries and
diseases. The Government contributes 5.5% of each Omani employee’s monthly
wage. The Public Authority for Social Insurance invests all funds received, and
it pays out sums due to employees upon their retirement and as compensation
for injuries and diseases.
In accordance with the Labor Law (Royal Decree No. 35 of 2003), employers
must pay an end-of-service benefit (ESB) to their foreign employees. The ESB is
calculated on an employee’s final wage and paid according to the following
guidelines:
• For the first 3 years of service, an equivalent of 15 days’ basic pay for each
year worked
• For each subsequent year, the equivalent of one month’s basic pay
Special requirements for foreign nationals
An employer must make an annual contribution of OMR100 toward the
vocational training levy for each non-Omani employee.