Oman will introduce personal income tax on 1 January 2028. Individuals with annual income above OMR 42,000 will pay 5% tax, after eligible deductions. The Tax Authority estimates about 99% of the population will not be affected, but high earners and their employers should start preparing now.
The key facts
- Law: Personal Income Tax Law, Royal Decree No. 56/2025, issued 22 June 2025.
- Start date: 1 January 2028, so 2028 is the first tax year.
- Rate: 5%.
- Threshold: annual gross income above OMR 42,000.
- Exemptions: the law lists 16 categories of exempt income, and deductions are available.
- Filing: those above the threshold must file electronically within six months of the end of the tax year and pay the tax with the return.
Who is taxed on what
- Tax residents, Omani citizens and expatriates spending 183 days or more in Oman, are taxed on worldwide taxable income.
- Non-resident Omani citizens are taxed only on income generated in Oman.
What individuals should do now
- Estimate whether your total income, including salary, allowances, benefits in kind, rental and investment income, could exceed OMR 42,000.
- Start keeping organised records of all income sources and of expenses that may be deductible.
- If you have income in more than one country, review how double tax treaties might apply.
What employers should do now
- Identify employees whose total package, including allowances and benefits, may cross the threshold.
- Check your payroll system can report full remuneration, including benefits in kind, by employee.
- Review how pay packages are structured, since benefits count as income.
- Watch for the executive regulations, which will set out the detailed rules.
Still to come
The executive regulations were due within 12 months of the law’s publication in June 2025. They will settle details such as deductions and reporting. Check the Oman Tax Authority’s latest publications before relying on any detail not in the law itself.
Sources: Royal Decree No. 56/2025; Oman Tax Authority announcements.
Last reviewed: October 2026. This article is general information, not advice for your specific situation. Rules change; check the official source or speak to us before acting.
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