Oman doesn’t have personal income tax today. That changes on 1 January 2028, when a 5% rate applies to annual income above OMR 42,000 under the Personal Income Tax Law enacted in 2025 — the first personal income tax anywhere in the GCC’s history.
What’s actually changing
From 1 January 2028, individuals earning above OMR 42,000 a year pay 5% personal income tax on the amount above that threshold. Below it, nothing changes. This is not a broad-based tax on Oman’s workforce — the threshold is set high enough that it targets higher earners specifically, not the general employee base.
Until then — through all of 2026 and 2027 — no personal income tax applies. This is the window businesses and relocating individuals have to plan in, not react in.
What to do now, not in 2027
- Review compensation structures for owners and senior staff against the OMR 42,000 threshold, especially for multi-year employment or relocation packages that will still be running in 2028.
- Build the 2028 change into any long-term hiring plan for Oman, rather than treating it as a distant policy note.
- Don’t confuse this with corporate tax, which already applies today at 15% generally (with a reduced rate for qualifying SMEs) — personal income tax is a separate, new obligation layered on top from 2028.
Where this sits in the wider picture
Oman’s appeal has never rested on having no personal tax forever — it’s an industrial and logistics base built around its ports, free zones, and the Duqm SEZAD, preparing deliberately for this change rather than being caught by it. Structuring your Oman entity and your team’s compensation now, with 2028 already factored in, avoids a scramble later.
Read the full picture on our Oman country page, including the current setup process and compliance calendar.