Preparing for Oman’s 2028 Personal Income Tax: A Timeline
Oman does not have personal income tax today. Under the Personal Income Tax Law enacted in 2025, that changes from 1 January 2028, when a 5% rate applies above OMR 42,000 of annual income. Here is what that timeline actually means.
What You Need to Know
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Now, through 2027
No personal income tax applies. Corporate income tax is 15% generally, with a reduced rate for qualifying SMEs, and VAT is 5%.
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1 January 2028
Personal income tax begins at 5% on annual income above OMR 42,000 — a relatively high threshold, meaning it targets higher earners rather than the general workforce.
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What to do before then
Review compensation structures for relocating staff and owners against the 2028 threshold, and build it into any multi-year hiring or relocation plan now rather than in 2027.
Before You Move Forward
- Confirm whether your team’s compensation sits above or below the OMR 42,000 threshold.
- Factor the 2028 change into any multi-year Oman hiring plan.
- Revisit this page for updates as the effective date approaches — this is a change in progress, not yet in force.
See the Full Oman Picture
This guide is one slice of the Oman page — structure options, tax snapshot, and the full compliance calendar live there.