Oman's Personal Income Tax: What Changes in 2028

Oman will introduce a Personal Income Tax from 1 January 2028, the first in the GCC. It was enacted by Royal Decree No. 56/2025, issued on 22 June 2025 and published in the Official Gazette on 29 June 2025.

The date is far enough away that it is easy to set aside. It is also close enough that the people most affected should be planning now.

Who will pay personal income tax in Oman?

Element	Detail
Effective date	1 January 2028
Rate	5%, flat
Threshold	Annual gross income above OMR 42,000 (approximately USD 109,000)
Who it applies to	Omani nationals and expatriates; residents and non-residents, with differing rules by residency
Expected liability	Around 1% of the population, per Oman Tax Authority estimates

What income is covered?

The law reaches considerably wider than employment income. Covered sources include salaries and wages, self-employment income, leasing income, royalties, interest, profits from shares, equity and sukuk, proceeds from real-estate disposals, pensions and end-of-service gratuities, prizes, grants and gifts, and board remuneration.

Deductions and exemptions are built in, covering education, healthcare, primary housing, zakat and donations, and inheritance.

What is not settled yet

The law runs to 76 articles across 16 chapters, but the Executive Regulations are still to come, due within a year of Gazette publication, so expected during 2026. Those regulations will determine much of how the law works in practice, including the detail of residency treatment and how deductions are claimed and evidenced.

Anyone making decisions now should treat the framework as settled and the mechanics as provisional.

Why Oman is doing this

The Personal Income Tax is framed explicitly as part of Oman Vision 2040, the economic diversification programme aiming to raise non-oil revenue toward 18% of GDP by 2040. Understanding that context matters, because it signals the direction of travel rather than a one-off measure.

What to do between now and 2028

For most people the answer is nothing yet. For higher earners, business owners drawing income across several of the covered categories, and expatriate executives weighing longer-term arrangements, there is value in understanding now how the 5% threshold will apply to your particular income mix, particularly where income arrives through shares, property or end-of-service entitlements rather than salary alone.

We will publish an update when the Executive Regulations are issued. If you would like to discuss your position ahead of that, contact us.