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Oman To Become The First GCC Nation As It Sets Impose Personal Income Tax

Oman will be introducing a 5% income tax. This tax will be on people whose annual income exceeds OMR42,000 from 2028.

by Anupriya Mishra
Oman To Become The First GCC Nation As It Sets Impose Personal Income Tax

It has been quite some time since the news of Oman introducing personal income tax has been creating a buzz on social media. And recently, the Sultanate announced that it will impose a 5% income tax on a certain section of people. Here’s all you need to know about this development related to personal tax in the region, as Oman will become the first in the GCC to do so.

Oman To Introduce 5% Personal Income Tax

As revealed in a report by Khaleej Times, Oman will be introducing a 5% income tax. This tax will be on people whose annual income exceeds OMR42,000 from 2028. This amounts to about AED 400,000! As per the personal income tax law, which was issued by the Royal Decree No. 56/2025, the aim is to diversify the income sources of the government and to reduce revenues from oil.

It Is Expected To Be Implemented From 2028

tax by utah778
Image Courtesy: Canva Pro/utah778

It should be noted that when Oman, it imposes the personal income tax will become the first country in the GCC to do so. At this point, it’s worth mentioning that the UAE and other Gulf countries have also introduced Value Added Tax and Corporate Income Tax. Not only this, the UAE has also levied tax on tobacco and carbonated drinks. This has been done to encourage a healthy lifestyle amongst its residents. However, coming back to the personal income tax in Oman, it is expected that this will come into effect from the beginning of 2028.

Also Read: Saudi Heritage Commission Includes 5,969 Sites In The National Urban Heritage Registration

The Law Includes Several Exemptions

This law, however, includes deductions and exemptions that account for social considerations. Yes, these include education, inheritance, healthcare, donations, Zakat, primary housing, and several other factors. For this purpose, a study had been conducted before the personal income tax was implemented. So, about 99% of Oman’s population will not be subject to this tax.

Were you aware of this massive development in this region?

Cover Image Courtesy: Canva Pro/oreundici

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First Published: June 23, 2025 12:49 PM