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Big changes are coming to Oman’s tax landscape—and they start with Oman’s personal income tax 2028. For the first time in history, the Sultanate will implement a 5% flat personal income tax beginning on January 1, 2028. The reform targets high earners and is part of the government’s broader push for fiscal diversification under Vision 2040. In commercial districts like Al Mawaleh, known for its thriving SME culture and forward-thinking professionals, businesses and residents are proactively preparing for what’s ahead.
Introduced under Royal Decree No. 56/2025, Oman’s personal tax 2028 reflects a strategic shift toward economic sustainability. The tax applies to individuals earning more than OMR 42,000 annually (approx. USD 109,000) and aims to:
According to Oman tax updates from the Oman Tax Authority, this initiative was carefully designed through economic impact studies and will affect fewer than 1% of the population.
The tax covers Omani citizens and expatriates who meet the residency threshold—183+ days per year in-country. Taxable income sources include:
To maintain social equity, personal taxation in Oman includes several exemptions:
These carve-outs reflect Oman’s values and ease the tax burden on middle-income earners.
1. Evaluate Your Residency Status
If you reside in Oman for over 183 days annually, you’ll be considered a tax resident under the new income tax law in Oman. Non-residents will be taxed only on Omani-sourced income.
2. Track Income by Category
Begin organizing earnings—employment, rental, freelance, and dividends—into categories. These will be required for future filings through the Tax Authority’s digital portal.
3. Record Deductible Expenses
Collect receipts for deductible expenses like school fees, hospital visits, and charitable contributions. Accurate records will help reduce taxable income.
4. Seek Tax Advisory Support
With over 70 legal articles covering multiple scenarios, working with a professional tax advisor is highly recommended to ensure compliance and optimize your tax planning.
Although the law targets individuals, businesses—particularly HR and finance departments—will face new administrative responsibilities, such as:
In Al Mawaleh, where both local and international firms operate side by side, many businesses are already deploying tax modules in their ERP systems to stay ahead of reporting requirements.
The Oman Tax Authority is leading the transition to Oman’s personal tax 2028 with clear initiatives:
These steps aim to build confidence and support voluntary compliance from the outset.
As Oman becomes the first Gulf state to roll out a personal income tax, citizens and residents can expect:
This reform will complement other revenue efforts such as VAT and corporate tax, which together generated OMR 1.4 billion in 2024.
The introduction of Oman’s personal income tax 2028 is a transformative step toward economic maturity. While it’s designed to impact a limited segment of earners, its ripple effects will touch many corners of society, from budgeting practices to business operations.
In progressive communities like Al Mawaleh, where innovation and compliance converge, residents and professionals are already implementing smart strategies to embrace change. Whether you’re a salaried executive, a consultant, or an expat preparing to stay, understanding Oman’s personal tax 2028 early means you’ll enter the future informed, compliant, and confident.
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