NEW Introduction to Personal Income Tax in Oman published by MGI Vision

MGI Vision, our member firm in Muscat, has released a new Introduction to Personal Income Tax in Oman offering a clear and concise overview of the Sultanate’s latest personal income tax law, introduced under Royal Decree No. 56/2025.

This reform marks a major milestone in Oman’s Vision 2040, aiming to diversify revenue sources while introducing equitable taxation for higher-income individuals. The law will take effect from 1 January 2028, giving residents and non-residents plenty of time to prepare.

Key highlights of the guide include:

• Tax will apply at 5% to individuals earning over OMR 42,000 annually (after deductions).

• Clarification of tax residency rules and global income implications.

• Comprehensive breakdown of taxable income types (e.g. salaries, dividends, rental income).

• Specific exemptions for diplomatic staff, overseas earnings, education and healthcare costs, and more.

• Detailed guidance on deductions, lifetime exemptions, and filing requirements.

• Overview of anticipated executive regulations and compliance best practices.

This guide is a valuable resource for members need to advise clients on how best to navigate the new tax environment in Oman.

Download the Guide here

For further information, reach out to the MGI Vision team via their profile page or website.

MGI Worldwide is a top 20 ranked global accounting network and association with over 8,800 professionals, accountants and tax experts in some 440 locations in almost 100 countries around the world.

His Majesty Sultan Haitham bin Tarik has issued Royal Decree No. 56/2025 setting out the Personal Income Tax Law in the Sultanate of Oman. The law covers definitions, scope, taxable income, exemptions, computation, filing requirements, and penalties.

In this short guide, MGI Vision provides a 

Taxability depends on meeting conditions specified in the law, and further details will be issued through Executive Regulations by the Tax Authority to ensure effective implementation and clarity.

This law is part of Oman’s wider tax reform under Vision 2040 to diversify government revenue streams while ensuring equitable contributions from higher-income earners.

Personal tax will be imposed at a rate of 5% on anyone whose annual gross income exceeds OMR 42,000, after deducting expenses such as education, healthcare, and other deductions and exemptions specified by law.