When planning work on a project in Oman, one of your biggest barriers will be complying with all immigration regulations. In short, your employee will need to be sponsored for a Work Permit in Oman. Since you may be facing time restraints or unclear information about the necessary immigration processes, it’s crucial to understand the requirements and processes for securing the proper visa or Work Permit.
Professional Employer Organizations provide co-employment services, lessening your legal risk and streamlining administration that can otherwise monopolize in-house time and resources.
Co-employment in Oman
Companies looking to expand internationally will encounter many administrative hurdles. Co-employment, or “joint employment,” is one of the most efficient ways to manage legal, immigration and payroll issues in Oman. A PEO essentially assumes all employment duties and takes over legal responsibility for your employee.
Sending employees to Oman means allocating significant resources toward complex administrative tasks, and keeping abreast of mutable, foreign regulations. Skimping on these efforts can dramatically heighten your company’s risks, but internal resources are often better spent on high value business goals and strategies. Outsourcing employment in Oman means reducing, or even eliminating, most of your company’s liability, while streamlining administrative tasks and disencumbering internal staff. The most efficient way to do this is through a management company.
One major roadblock will be payroll in Oman. If you’re incorporated locally, you need to ensure that your local entity is legally capable of running a payroll. Even if you are considering local incorporation in the future, a local payroll provider reduces your liability in the interim. Further, a management company accomplishes all of the same payroll responsibilities, alongside numerous other specialist services that reduce your liability even more.
When navigating taxation in Oman, you need to consider issues like double taxation, permanent establishment, withholding tax, and your employee’s personal tax. It’s easy to make missteps when dealing with foreign tax law; these missteps can expose you and your client to serious liability. Outsourcing the administration to a local tax specialist is a valuable step in co-employment risk mitigation.
If you’re looking to send staff to Oman for an overseas project, it can be difficult to find clear information on an unfamiliar jurisdiction, much less efficient solutions. You’re facing complicated issues, in addition to a host of problems you may not have even considered yet. To compound these difficulties, you’re likely under sizable time and budget constraints.
As a contractor, you’re probably interested in legally maximising your net earnings. Better yet, you might even work out how to work tax free in Oman.
Unless you’re already an expert in the tax system of Oman and have lots of free time to pore over your return, you should consider seeking specialist tax advice. Otherwise, you risk paying too much, or mistakenly violating tax law in more than one country.
Thinking about doing some oil and gas contracting in Oman? It’s a great opportunity, but you need to be aware of your responsibilities beforehand.
Visas for oil and gas contractors in Oman
You may be tempted to enter the country on a tourist or business visa, especially if you’re on a regular Fly-In Fly-Out (FIFO) rotation.
We strongly advise against this.
Umbrella Companies ensure your best possible earnings, a regular cash flow, full compliance with all laws and regulations, and extremely low administrative overhead. You might have concluded (astutely) that working with an Umbrella Company is your best bet for any freelance work outside your home country.
Choosing to work through an Umbrella Company is only your first step, though. Your next task is picking the best Umbrella Company in Oman, according to your own personal situation. Each company has its own standards, fees, services, and specialties. If you’re working with an agency, these considerations become even more complicated.
So what are your options?
Getting the most out of your new contract will mean figuring out how to comply with all tax and immigration laws, while avoiding as much redundant admin as possible.
The best way to get started on that is to do your research and fully consider your options. One consideration you’ll need to make is comparing Ltd and Umbrella Companies for contracting in Oman.
Handling personal arrangements when taking on a contract in Oman
For a lot of contractors, working in Oman is a big move. What about accommodation? What about language or cultural barriers? What about simply finding your way around and existing in an unfamiliar environment?
You might even be bringing a spouse or family, leaving you little time to also sort out complicated legal and financial issues.