Oman will introduce a Personal Income Tax (PIT) regime from 1 January 2028 under Royal Decree No. 56/2025. A 5% tax will apply to the taxable income of individuals with gross annual income exceeding OMR 42,000. The regime supports Oman Vision 2040 by promoting economic diversification and fiscal sustainability while reducing dependence on oil revenues. It may cover income such as salaries, rental income, and intellectual or industrial property income, with exemptions and deductions available under specific conditions. The Oman Tax Authority expects around 99% of the population to remain outside the scope of the tax.
Tax Reliefs Under Oman’s Personal Income Tax Framework
- Under certain conditions, certain Income earned outside Oman
- Capital gains from primary residence sale & Certain capital gains from secondary residence sale
- Inheritance and gift income
- For a specified period following registration, certain income from industrial property rights
Potential Deductions
- Eligible education expenses & Qualifying healthcare costs
- Charitable donations, zakat and endowments
- Interest paid on qualifying loans relating to a main residence
Oman PIT: Key Dates and Implementation Milestones
2025 : Law issued through Royal Decree No. 56/2025 , Law published in the Official Gazette
2026 : Further regulations, guidance and implementation details expected
01-01-2028 : Personal Income Tax Law scheduled to become effective
Oman’s Digital Approach to Tax Compliance
Oman is enhancing its digital tax administration to support the implementation of the PIT regime, improve data accuracy, and simplify compliance. Individuals and businesses should maintain accurate and organised records of income, expenses, deductions, investments, and relevant transactions to prepare for future tax requirements.
How to Get Ready for Oman’s PIT Regime ?
- Check Your Sources of income
- Get ready and maintain your documents
- Study the Available Exemptions & Deductions
- Evaluate Personal Financial Structure
Oman Personal Income Tax: Employer & Business Considerations
- Employee & Payroll system
- Employees under the tax threshold
- Tax withholding and reporting requirements
- HR & Finance procedures and records.
- HR & Finance employee training
- Regulations and guidance from the Oman Tax Authority
Numerous changes are happening in workplaces. The enormous progress in using technology results in a high degree of automation, transparency and acceleration. In a global business hub where the use of technology is in full momentum, there is no choice, except to adopt the changes for businesses to become successful in this era of constant change.
GSPU CHARTERED ACCOUNTANTS a leading and professional Audit and Consultancy with 18+ years of international experience provides audit & assurance, accounting & financial, Tax & business consulting, company incorporation & management consultancy services adopting a professional & friendly approach and caring about the success of our clients holding an enviable reputation. Being the Best Auditing Firm & TAX Consultancy in Bahrain, our well-known & Certified Accountants & Auditors who have international expertise as well as a comprehensive knowledge of the local market work hard with a strong moral commitment and gain the trust of our customers by providing professional services of high quality in an independent, objective and ethical manner obeying Integrity and professionalism. Expert financial and compliance advice for business innovation, success and survival is a basic need for every business. We at GSPU prioritize time and quality in Financial, Accounting, Audit, Company Formation, Management and VAT services to help businesses to grow by making a clear strategy saving time & money by generating more revenue. Your Success, Our Passion.
We the Global Strategic Partners Union always welcome your Business & Financial grievances as we make the work into service, and turn customers into friends & client relationships as business partnerships.
