MUSCAT: 99% of Oman’s population will not be subject to the newly introduced personal income tax that will take effect from January 2028, the Oman Tax Authority has confirmed.

His Majesty Sultan Haitham bin Tarik has issued Royal Decree No. (56/2025) introducing an Individual Income Tax Law in Oman.

“The results of the study revealed that about 99% of community members in the Sultanate of Oman are not affected by this tax, reflecting the law’s trend towards imposing tax only on high-income groups,” Oman Tax Authority said.

Under the law, the tax is imposed on an individual whose total income exceeds RO 42,000 annually, and the tax rate is 5% of the income subject to it.

“It also contributes to Oman Vision 2040 by diversifying income sources and reducing reliance on oil revenues, with targets of 15% of GDP by 2030 and 18% by 2040,” the authority said.

Additionally, the tax aims to promote wealth redistribution among societal segments, enhancing social justice, while supporting the state budget and specifically financing part of the social protection system.

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