Personal Income Tax
With the promulgation of RD No. 56/ 2025, the Sultanate of Oman has become the first GCC country to impose personal income tax on its citizens and residents. The promulgation of the new law is aligned with Oman Vision 2040 objectives of diversifying its income sources, further reducing its dependency on oil-based revenues. The new law proposes to levy a 5% personal income tax on natural persons’ annual income exceeding the threshold of OMR 42,000 with effect from 1 January 2028, with additional deductions and exemptions being available to taxpayers.
We would be happy to assist with more details on the framework of the new law, once it is published in the Official Gazette and the executive regulations are issued by the Chairman of Tax Authority.