Oman to impose 5% income tax on high earners from 2028

Khaleej Times

5 hours ago

Oman will impose five per cent income tax on people whose income exceeds 42,000 Omani riyals (approximately Dh400,000) from 2028.
Under the Personal Income Tax Law issued by Royal Decree No. 56/2025, the aim of introducing income tax is to diversify income sources of the government and reduce dependence on oil revenues.
The Sultanate will become the first Gulf Cooperation Council (GCC) country to introduce personal income tax in the region.
The UAE and other Gulf introduced value-added tax (VAT) and corporate income tax. In addition, the UAE also levied tax on tobacco and carbonated drinks in order to encourage healthy lifestyles among the residents.
According to Oman News Agency, the law will come into effect at the beginning of 2028.
Karima Mubarak Al Saadi, director of the Personal Income Tax Project, told the Omani news agency that all necessary preparations and requirements for implementing the tax have been completed.
However, there are some exemptions. The law also includes deductions and exemptions accounting for social considerations in the Sultanate of Oman, such as education, healthcare, inheritance, zakat, donations, primary housing, and other factors.
Oman said a thorough study was conducted before implementation of personal income tax which carefully considered exemption threshold, revealing that approximately 99 per cent of Oman's population will not be subject to this tax.