Oman Personal Income Tax 2028: A Historic GCC Policy Shift

 The Sultanate of Oman is charting a new fiscal path in the Gulf Cooperation Council (GCC) region with the introduction of a Personal Income Tax (PIT), effective from January 1, 2028. As per Royal Decree No. 56/2025, issued by His Majesty Sultan Haitham bin Tariq and published in the Official Gazette No. 1602 on June 30, 2025, this move marks the first time a GCC country has introduced a tax on personal income.

 

Key Highlights of the New Personal Income Tax Law

Under the new PIT law, individuals earning over OMR 42,000 annually will be taxed at a flat rate of 5%. Income below this threshold will remain exempt. The PIT applies to both Omani nationals and expatriates, covering residents and non-residents alike, with differing rules based on residency status.

 

The net income is calculated by deducting OMR 42,000 from the gross income, and the tax is applied to the taxable income, which is the net income minus allowable deductions, exemptions, and losses.

 

Who is Considered a Resident for Tax Purposes?

A resident is defined as a person who is present in Oman for more than 183 days (consecutively or intermittently) in a tax year. Residents are subject to tax on their worldwide income, while non-residents are only taxed on their Oman-sourced income.

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