Enacted law, checked on 11 October

Oman issued Royal Decree No. 56/2025 on Personal Income Tax. The Tax Authority says the law contains 76 articles across 16 chapters and will enter into force at the beginning of 2028.

The authority states that the tax applies to a natural person whose total annual income exceeds OMR 42,000 from income types and under conditions specified by the law, at a 5% rate on taxable income.

What is known now

The Tax Authority says approximately 99% of the population is expected not to be subject to the tax based on the exemption threshold and its impact study.

The law includes deductions and exemptions addressing areas such as education, healthcare, inheritance, zakat, donations and primary housing. Detailed outcomes depend on the operative legal provisions and taxpayer facts.

Business and mobility impact

Employers with mobile or highly paid workforces should treat 2028 as an implementation horizon and map which compensation, benefits, assignment structures and employee populations may require review.

Final payroll, withholding, reporting or mobility processes should not be designed from headline thresholds alone. The executive regulations and official guidance will be important to the detailed compliance model.

Why it matters

The significance is structural: Oman is adding an individual-income-tax layer to its tax system, with the law already enacted even though application begins in 2028.

The Tax Authority’s legislation page lists Royal Decree 56/2025. This review did not establish a separately published executive-regulation text there. That limited finding is not proof that no implementing instrument exists; detailed payroll or reporting processes require the operative instruments.