Oman to become first Gulf country to impose personal income tax

Al Arabiya

23-06-2025

Oman issued a royal decree to become the first country in the Gulf to impose a personal income tax, its tax authority said on Sunday, as the small oil producer works to diversify its revenue stream.
Oman, among the smaller Gulf economies, launched a medium-term fiscal program in 2020 to reduce public debt, diversify revenue sources, and spur economic growth, which has improved public finances.
Oman, which still remains largely reliant on oil revenue, will impose a 5 percent tax on taxable income for individuals earning over 42,000 Omani rials ($109,091) per year starting from 2028, according to the decree.
'The law also includes deductions and exemptions that take into account the social situation in the Sultanate of Oman, such as education, healthcare, inheritance, zakat, donations, primary housing,' the country's tax authority said in a statement.
The Gulf country added that the tax would apply to about 1 percent of the population. ($1 = 0.3850 Omani rials)