Oman to Introduce 5% Personal Income Tax for High Earners from 2028

Oman, 23 June, 2025 : Oman will implement its first-ever personal income tax starting January 1, 2028, under Royal Decree No. 56/2025 issued by Sultan Haitham bin Tarik. The new law imposes a 5% tax on individuals earning over OMR 42,000 annually, affecting only the top 1% of income earners.

Part of Oman Vision 2040, the move aims to diversify revenue, enhance fiscal sustainability, and reduce oil dependence. The law includes social exemptions for education, housing, healthcare, zakat, and donations, ensuring fairness and social equity.

Comprising 76 articles in 16 chapters, the law will be backed by executive regulations within a year. The Tax Authority is also launching a digital compliance system to integrate data across government platforms.

Officials expect the tax to complement existing revenues from VAT and corporate tax, boosting Oman’s fiscal credibility and investment appeal. Educational resources and awareness campaigns will be rolled out ahead of enforcement.