Frequently Asked Questions
Are there official per diem rates in Oman?
Oman does not mandate standardized per diem rates for private sector companies. Most organizations set their own daily travel allowances through internal travel policies. Some government bodies and large organizations may maintain internal guidelines for travel allowances, but private companies usually determine per diem amounts based on destination costs, trip length, and employee level.
What's included in each per diem rate?
Each calculation breaks daily allowances into three components: meals and entertainment, accommodation (when not centrally booked), and incidentals such as local transport and tips. Rates are presented in both the local currency and USD for easy comparison and reimbursement processing.
What are the VAT and GST considerations for business travel expenses?
The UAE introduced 5% VAT in 2018, Saudi Arabia raised its rate to 15% in 2020, and Bahrain and Oman have their own VAT frameworks. Egypt applies standard VAT across hospitality services. Our per diem figures account for applicable taxes so your reimbursement policies stay compliant — critical if your company is subject to audits under IFRS or local tax authority scrutiny.
What is a per diem or daily allowance?
A per diem (Latin for "per day") is a fixed daily amount a company pays employees to cover meals, accommodation, and incidentals while travelling for work. Using a per diem rather than reimbursing actual receipts reduces administrative overhead and gives employees spending certainty.
Can I use these rates for freelancers, contractors, or guests?
Yes. Many companies in the GCC engage contractors and consultants on short-term assignments. Per diem structures are commonly used in these arrangements, and this calculator works equally well for employment contracts and independent contractor agreements.
What's the difference between a per diem and a living allowance?
Per diem rates are designed for short-term business travel — typically trips under 30 days. For longer assignments, such as a six-month project in Riyadh or a multi-year regional posting in Abu Dhabi, companies typically switch to a cost-of-living allowance (COLA) or expatriate package instead. These are structured differently: they factor in housing, schooling, home leave flights, and hardship premiums, and are benchmarked against data from specialist mobility firms rather than daily travel rate surveys. If you're managing a longer posting, our calculator can still be useful for the initial mobilisation period and short business trips made during the assignment, but it shouldn't be used as the basis for a full expat compensation package.
Are per diems subject to income tax?
In zero-income-tax jurisdictions like the UAE, Qatar, Kuwait, and Bahrain, per diem payments are generally not subject to personal income tax for the employee — which is one of the reasons the GCC is attractive for international assignments. However, your home country's tax rules still apply if your employees remain tax residents there. UK employees on secondment to Dubai, for example, may still need to declare per diem payments above HMRC's approved rates. Always verify with a tax adviser familiar with both the host country and the employee's country of residence.
