The Oman Tax Authority has confirmed that Personal Income Tax (PIT) in Oman will come into effect from 1 January 2028. This marks a major development in Oman’s tax system and applies to both Omani citizens and expatriates, based on residency status.
Tax Residents (Omani citizens and expats):
Will be taxed on their worldwide taxable income.
Non-Resident Omani Citizens:
Will be taxed only on taxable income generated within Oman.
Income Threshold and Tax Rate
An annual income threshold of OMR 42,000 has been introduced.
Income up to OMR 42,000 → Not taxable
Income above OMR 42,000 → Taxed at 5%
The 5% Personal Income Tax rate will be applied after considering eligible deductions, making the system progressive and considerate of essential living costs.
Key Highlights of Oman Personal Income Tax
Individuals and employers are advised to start early planning and awareness, especially high-income earners who may fall within the taxable bracket.
