Crime Today News
Muscat: Oman will implement a 5 percent income tax on individual whose annual earnings exceeds 42,000 Omani riyals (Rs 94,57,768) from January 1, 2028. This move makes Oman the first GCC country to introduce personal income tax in the region.
The new law, issued by Royal Decree No. 56/2025 by Sultan Haitham bin Tarik, on Sunday, June 22, outlines a comprehensive framework of 76 articles across 16 chapters. This tax regime is designed to diversify the country’s revenue streams while ensuring that most citizens are not affected.
According to the Oman News Agency (ONA), the law incorporates various discounts and exemptions to account for the social dimension of taxation. These cover areas such as education, healthcare, inheritance, zakat, donations, and primary housing.
The legislation is designed to complement Oman’s tax system in a way that aligns with the country’s economic and social context, as well as the objectives assigned to the Tax Authority.
It is expected to support Oman Vision 2040 by diversifying income sources, reducing reliance on oil revenues, promoting wealth distribution, and enhancing social justice.
The revenue generated from this tax will contribute to the state budget, with a portion earmarked for financing the social protection system. The decision to introduce this tax follows a comprehensive study evaluating its economic and social impact.
Importantly, around 99 percent of Oman’s population will not be subject to the tax, as the exemption threshold has been carefully determined based on income data from various government agencies.
Karima bint Mubarak Al Saadiya, Director of the Individual Income Tax Project at the Tax Authority, noted that the Authority’s electronic system is designed to encourage voluntary compliance. It is integrated with key institutions to ensure accurate income calculation and verification of tax returns.
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