Oman Plans to Start Personal Income Tax in 2028 – What You Should Know

BY THE ARAB TODAY Jun 24, 2025

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Oman Plans to Start Personal Income Tax in 2028 – What You Should Know

Oman has announced a new personal income tax through a royal order, according to the state-owned Oman News Agency (ONA) on Sunday. This move is part of the country’s plan to earn money from sources other than oil.

Personal Income Tax in Oman

Oman’s tax authority said that the new income tax law includes deductions and exemptions to match the country’s social needs. These include things like education, healthcare, inheritance, zakat, donations, and housing.

Starting in 2028, Oman will introduce a 5% income tax for individuals earning more than $109,091 (OMR 42,000) per year. This tax will only affect about 1% of the population.

Karima Mubarak Al Saadi, head of the Personal Income Tax Project, said that all preparations for the tax are complete. She also said a new electronic system has been set up to make it easier for people to file taxes correctly. This system is connected with other government departments to check income and tax information.

The detailed rules for this tax will be published within a year in the Official Gazette.

A First in the Gulf

According to Reuters, Oman will be the first Gulf country to introduce this kind of personal income tax.

Part of Oman Vision 2040

This new tax supports Oman Vision 2040, which aims to reduce the country’s reliance on oil income. The goal is to increase non-oil income to 15% of the GDP by 2030 and 18% by 2040.

The tax is also meant to help share wealth more fairly among people, strengthen the national budget, and support social protection programs.

In 2020, Oman launched a plan to lower debt, grow the economy, and find new sources of income. These efforts have already helped improve the country’s finances.