Oman tax
Tax residence: More than 183 days in tax year. Foreign-source income of residents: 5% PIT from 2028. No special regime for new residents in our records.
Checked against official sources on Change log
Tax residence
- More than 183 days in tax year · More than 183 days, continuous or intermittent, makes a person a tax resident.
- Under the PIT law, a resident taxpayer's total income includes cash and in-kind amounts received in Oman or abroad (foreign-source income included), while a non-resident is taxed on amounts received in Oman only. Until 2028 no personal income tax applies.
- Resident taxpayers are taxed on total income received in Oman or abroad (worldwide basis); non-residents only on income received in Oman. Applies from 1 January 2028; status: enacted, not yet in force.
Standard rules and foreign-source income
Standard rules
Oman tax: corporate 15%, VAT 5%, personal income tax from 2028
5% tax
Details
- On: PIT: total annual income above OMR 42,000 (≈ $109,000) (resident: received in Oman or abroad
- Who: PIT applies to natural persons, resident or non-resident
- Limit: OMR 42k/yr ≈ $109k
Corporate income tax is 15% of net taxable income; 10% is deducted from payments to non-residents for services, interest or royalties; VAT is 5%. Personal Income Tax (Royal Decree 56/2025) takes effect from the start of 2028 at 5% on income above OMR 42,000 (≈ $109,000) a year; a person present more than 183 days in the year is a tax resident. 1 2 3
Taxed on
PIT: total annual income above OMR 42,000 (≈ $109,000) (resident: received in Oman or abroad; non-resident: received in Oman only). Corporate: net taxable income.
Who it applies to
- PIT applies to natural persons, resident or non-resident, whose total income exceeds OMR 42,000 (≈ $109,000) a year, from the start of 2028.
- Tax resident: stays in Oman more than 183 days in the year, continuously or intermittently, Omani or not.
Exclusions
- Deductions and exemptions include education, healthcare, inheritance, zakat, donations and primary housing.
- Foreign tax can be deducted only where directly related to income taxable in Oman.
Limits
- OMR 42,000 a year (≈ $109,000) · Personal Income Tax threshold; PIT is charged at 5% on taxable income above it from 2028.
Days in the country
- More than 183 days in tax year · More than 183 days, continuous or intermittent, makes a person a tax resident.
Tax residence
Under the PIT law, a resident taxpayer's total income includes cash and in-kind amounts received in Oman or abroad (foreign-source income included), while a non-resident is taxed on amounts received in Oman only. Until 2028 no personal income tax applies.
Visas
Residency permit type does not set tax status; presence days do.
Other taxes
VAT basic rate 5% on most goods and services; withholding 10% on payments to non-residents; concession contracts taxed at 55%.
Checked against official sources on Change log
Standard rules
Oman: no personal income tax until 1 January 2028; 5% on income above OMR 42,000 from then
5% tax
Details
- Who: Applies from 1 January 2028
- Limit: OMR 42k/yr ≈ $109k
Oman levies no personal income tax in 2026 and 2027. Royal Decree 56/2025 introduces a 5% personal income tax on annual income above OMR 42,000 (≈ $109,000) from 1 January 2028; residents will be taxed on income in Oman or abroad, non-residents on income in Oman only. 3 2 4
Taxed on
Net income = total income (cash and in-kind receipts, including salary, pensions, self-employment income and residential rent) exceeding OMR 42,000 (≈ $109,000) per year, less exemptions, costs and losses; the 5% rate applies to the resulting taxable income. Resident taxpayers: total income received in Oman or abroad; non-residents: total income received in Oman only.
Who it applies to
- Applies from 1 January 2028 (law published in Official Gazette 1602 on 30 June 2025; executive regulation to be issued by the Tax Authority chairman within a year of publication).
- Tax residents with total annual income above OMR 42,000 (≈ $109,000) must file a return; employers must withhold on salaries above that amount.
- Self-employed individuals without a commercial registration are covered; the Tax Authority FAQ allows deducting 15% of gross self-employment income or actual documented expenses.
Exclusions
- Individuals whose total annual income is OMR 42,000 (≈ $109,000) or less have no net income and do not file.
- Foreign tax can be deducted only where directly related to income sources taxable in Oman (Tax Authority FAQ).
- Before 1 January 2028 no personal income tax applies to salary or foreign-source income of individuals; the existing Income Tax Law taxes companies and permanent establishments (15% of taxable income).
Limits
- OMR 42,000 a year (≈ $109,000) · Total annual income above this amount is net income subject to 5% personal income tax from 1 January 2028; filing duty arises above it.
Days in the country
- More than 183 days in tax year, continuous or intermittent · Staying in Oman more than 183 days makes a person tax resident, whether Omani or not (Tax Authority FAQ).
Tax residence
Resident taxpayers are taxed on total income received in Oman or abroad (worldwide basis); non-residents only on income received in Oman. Applies from 1 January 2028; status: enacted, not yet in force.
Visas
Residence permits do not themselves create tax residence; the 183-day presence test does.
Other taxes
Corporate income tax is 15% of taxable income of Omani companies and permanent establishments (Tax Authority portal home page).
Checked against official sources on Change log
VAT, social security and other taxes
- VAT basic rate 5% on most goods and services; withholding 10% on payments to non-residents; concession contracts taxed at 55%.
- Corporate income tax is 15% of taxable income of Omani companies and permanent establishments (Tax Authority portal home page).
Questions people ask
When do you become a tax resident in Oman?
More than 183 days in tax year (More than 183 days, continuous or intermittent, makes a person a tax resident). Under the PIT law, a resident taxpayer's total income includes cash and in-kind amounts received in Oman or abroad (foreign-source income included), while a non-resident is taxed on amounts received in Oman only.
Is foreign-source income taxed in Oman?
5% PIT from 2028. Oman levies no personal income tax in 2026 and 2027. Royal Decree 56/2025 introduces a 5% personal income tax on annual income above OMR 42,000 (≈ $109,000) from 1 January 2028; residents will be taxed on income in Oman or abroad, non-residents on income in Oman only.
≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.
Sources (4)
Official sources
- Tax Rate · Tax Authority, Oman · checked 2026-10-11
- Royal Decree 56/2025 issuing the Personal Income Tax Law (Official Gazette no. 1602; Arabic PDF published by the Tax Authority) · Oman Tax Authority · checked 2026-10-10 · published 2025-06-30
- Personal Income Tax (PIT) FAQs · Oman Tax Authority · checked 2026-10-11
- Tax Authority portal home page (income tax summary) · Oman Tax Authority · checked 2026-10-10