In a landmark development, His Majesty Sultan Haitham bin Tarik has issued Royal Decree No. 56/2025, today, promulgating the long-anticipated Personal Income Tax Law in the Sultanate of Oman.
- Repeals any provisions inconsistent with the new Law
This significant step marks a transformative shift in the Sultanate’s tax policy framework, aligning with broader fiscal diversification goals, international standards, promotion of social justice and fair distribution of wealth in the society.
The Law is also expected to include exemptions and deductions for the computation of taxable income, payment of the taxes and other procedural aspects in the attachment to the law.
Stay tuned for more insights and analysis as the Tax Authority gazettes the law.
- Effective Date of the Law: 1 January 2028
- Executive Regulations: To be issued by the Tax Authority within 1 year from the date of publication of the decree in the Official Gazette.
- Threshold and Rates: Omani individual taxpayers and resident expatriates whose annual Income exceeds OMR 42,000 to be subjected to a 5% tax. Applicable exemptions, deductibles, and losses to be clarified.
- Legal Impact:
- Repeals any provisions inconsistent with the new Law
- Enforcement of the Regime: Tax Authority to be granted power to access related banking and financial information from banks and financial institutions in Oman for effective enforcement of the regime.
This significant step marks a transformative shift in the Sultanate’s tax policy framework, aligning with broader fiscal diversification goals, international standards, promotion of social justice and fair distribution of wealth in the society.
The Law is also expected to include exemptions and deductions for the computation of taxable income, payment of the taxes and other procedural aspects in the attachment to the law.
Stay tuned for more insights and analysis as the Tax Authority gazettes the law.