- Oman has issued a new personal income tax law, set to take effect on January 1, 2028.
- The Tax Authority is required to issue the executive regulations within one year from the law’s publication in the Official Gazette, along with any necessary implementation decisions.
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Previous conflicting legal provisions have been repealed, paving the way for a unified and updated tax framework.
In a significant move toward diversifying government revenue and aligning with global tax standards, the Sultanate of Oman has officially issued a new law on personal income tax. This law will come into effect on January 1, 2028, marking the first time Oman imposes direct taxation on individuals’ income.
The Royal Decree draws its authority from several foundational statutes, including the Basic Law of the State, the Income Tax Law (Royal Decree No. 28/2009), the Value Added Tax Law (Royal Decree No. 121/2020), and the Electronic Transactions Law (Royal Decree No. 39/2025). It also builds upon the establishment of the Tax Authority (Royal Decree No. 66/2019) and its organizational framework (Royal Decree No. 42/2020).
Key Provisions of the New Law
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Scope of Taxation: The new legislation outlines the categories of income subject to tax, applicable thresholds, and exemptions. Details will be clarified in the executive regulations.
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Implementation Timeline: The Tax Authority is mandated to issue the law’s executive regulations within one year from the date of its publication in the Official Gazette.
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Legal Consistency: The decree repeals clause (1) of Article (18) bis from the existing Income Tax Law and any other provisions that conflict with the new personal income tax law, ensuring a consistent legal framework.
Strategic Objectives
The introduction of this law reflects Oman’s ongoing fiscal reform program aimed at increasing non-oil revenue, improving transparency, and meeting commitments under the Oman Vision 2040 framework. It also enhances the country’s alignment with international tax standards and practices, contributing to long-term economic sustainability.
The law’s publication in the Official Gazette marks a turning point in Oman’s tax policy, and affected individuals and businesses are encouraged to stay informed about forthcoming executive decisions and guidance from the Tax Authority.
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