Oman to Introduce 5% Income Tax for High Earners in 2028
Oman has announced that it will introduce a 5% personal income tax on individuals earning over 42,000 Omani riyals (approximately Dh400,000) annually, effective from 2028.
This move makes Oman the first country in the Gulf Cooperation Council (GCC) to implement a personal income tax.
The decision, outlined in Royal Decree No. 56/2025, aims to diversify the government’s revenue sources and reduce reliance on oil income.
The new tax law will apply to all residents, regardless of nationality, and includes various exemptions and deductions for education, healthcare, and social factors like zakat and donations.
Karima Mubarak Al Saadi, director of the Personal Income Tax Project, confirmed that preparations for the tax’s implementation are well underway.
A comprehensive study revealed that approximately 99% of Oman’s population will be exempt from the tax due to the high income threshold.
Tax experts like Thomas Vanhee noted that the law reflects a progressive policy intent, intending to protect low- and middle-income residents while modestly taxing higher earners.
The 5% income tax rate is considered conservative by global standards, signaling Oman’s commitment to fiscal reform aligned with its Vision 2040 strategy.
As Oman prepares to implement this new tax regime, the government emphasizes the importance of enhancing its economic stability and reducing dependence on hydrocarbon revenues.
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Khaleej Times
