Om Income Tax

---
name: om-income-tax
description: "Personal income tax for Oman: none in tax year 2026, and the rules of the 5% tax that starts on 1 January 2028 under Royal Decree 56/2025, read from the law text and the Tax Authority FAQs."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/om-income-tax"
  jurisdiction: "OM"
  tax_year: "2026"
  last_updated: "2026-11-03"
---

# Oman Personal Income Tax v1.3

> **General reference only.** This Guide is a draft for AI-assisted reference. Independent review accepts only the documented partial source closeout and its recorded conditions. It has not received accountant attestation. Do not use it to file, pay or take a position without professional review.

## Who this applies to

For tax year 2026 no personal income tax applies in Oman. The Personal Income Tax Law (RD 56/2025, published 30 June 2025) takes effect on 1 January 2028 (decree art. 4). From then it covers natural persons, resident and non-resident. A tax resident is a person in Oman for more than 183 days, continuous or not, in the calendar tax year (art. 1). Residents are taxed on income in or outside Oman; non-residents on income arising in Oman (art. 6).

## Rates, bands and thresholds

| Item | Amount | Tax year | Official URL |
|---|---|---|---|
| Tax in 2026 | None; the law starts 1 January 2028 | 2026 | https://tms.taxoman.gov.om/portal/documents/d/taxportal/-56_2025-1?download=true |
| Rate | 5% of taxable income (art. 8) | 2028 on | same |
| Threshold | Net income is what exceeds OMR 42,000 of gross income (art. 1) | 2028 on | same |
| Flat costs, self-employment and rental | 15% of that income, or actual costs (arts 11, 13); the choice holds for 3 years (art. 29) | 2028 on | same |
| Withholding by payers on other income | 20% of the tax due where the income exceeds OMR 20,000; full tax for a non-resident (art. 44) | 2028 on | same |
| Zakat and donations relief | Capped at 5% of gross income (art. 25) | 2028 on | same |
| Late payment | 1% a month (art. 45) | 2028 on | same |

## The base

Gross income has eleven sources (art. 7): salaries and wages; self-employment not entered in the commercial register (art. 10); rental; royalties; interest; dividends and gains on shares and sukuk; gains on real estate; pensions and end-of-service pay; prizes; grants and gifts; membership fees.

Exempt or deductible (art. 25): diplomats' salaries, on reciprocity; the living allowance for Omani staff at missions; a new resident's foreign income for 18 months from the day after non-resident status ends, once; an Omani resident's pay for work abroad; contributions to up to two pension schemes; education and healthcare for the person, spouse, ascendants, first-degree descendants, supported siblings and supported persons under the alternative-family system, subject to regulatory controls; gains on a resident-owned main home in Oman after 2 years from notifying the Tax Authority of its selection; gains on a selected resident-owned second home in Oman, with the second-home selection available once in a lifetime; zakat and donations to named bodies; income on Omani government sukuk, bills and bonds; compensation other than for pay; inheritance, wills and gifts between spouses or first-degree relatives; bank-loan interest or Islamic financing costs to build or buy the main home, once in a lifetime and subject to regulatory controls; income from specified industrial intellectual-property rights for 5 years from registration.

Losses on self-employment, rental, real estate and securities carry forward within the same source to the fifth following year (arts 26, 27). Foreign tax is creditable up to the tax due, with no carry forward (art. 32). The Tax Authority says the foreign tax must relate to income taxable in Oman (https://tms.taxoman.gov.om/portal/web/taxportal/personal-income-tax-faqs, question 7).

Worked points from the Tax Authority: pensions and Shura and State Council fees count; residential rent is taxable although exempt from VAT; royalty costs are not deductible; improvement costs count only on disposal (https://tms.taxoman.gov.om/portal/web/taxportal/personal-income-tax-faqs, questions 2, 3, 17, 18, 19).

## Deadlines and filing

| Step | Rule | Official URL |
|---|---|---|
| Who files | A person whose gross income exceeds OMR 42,000 (art. 33) | https://tms.taxoman.gov.om/portal/documents/d/taxportal/-56_2025-1?download=true |
| When | Electronically, within 6 months of the year end; the first return covers 2028 | same |
| No other income: salary, membership fees or pension from one employer | The sole employer files on the person's request (art. 33) | same |
| Payment | By the return date (art. 42); employers remit periodically (art. 43) | same |
| Correction | Within 30 days of finding the error, inside 3 years, unless an audit has started (art. 35) | same |
| Leaving Oman | Return at least 60 days before residence ends; unforeseen involuntary departure: before leaving without that 60-day lead time (art. 37) | same |
| Death | Executor files within 180 days (art. 36) | same |
| Records | 5 years from filing (art. 51) | same |
| Objection | 45 days from notice; the Tax Authority decides in 90 days (art. 59) | same |

The form, portal screens and box numbers do not exist yet in any source we opened, so no filing how-to is given here.

## Penalties and interest

Late payment 1% a month, which the Chairman may waive (art. 45). The Tax Authority may assess within 3 years of filing, or 5 years for fraud (art. 41). Collection normally lapses after 7 years from the last assessment; statutory collection actions interrupt the period, and a final judgment for the Authority produces a 15-year period (art. 50). Administrative fines are governed by regulations and capped at OMR 5,000 (art. 63). Intentional nonfiling, nonproduction, nondeduction or nonpayment of withheld amounts attracts OMR 1,000 to 5,000 (art. 65). Knowing false returns or forged evidence and intentional destruction of records attract 1 to 3 years imprisonment and OMR 10,000 to 20,000, or either penalty (art. 66); arts 67 to 71 address corporate liability, complicity, repetition, prosecution and settlement.

## Cross-border points

International agreements prevail (art. 2). RD 56/2025 art. 3 repeals item 1 of art. 18 bis of the Income Tax Law from 2028. The Tax Authority says a non-resident consultant paid by a government body then bears 5%, not 10% (https://tms.taxoman.gov.om/portal/web/taxportal/personal-income-tax-faqs, question 20). Residents and non-residents can get a tax residence certificate on request (art. 3).

## Two worked examples that recompute

**1. Salary OMR 60,000 in 2028, no exemptions.** OMR 18,000 exceeds the threshold, so tax is OMR 900.

```oa-check
name: Salary 60000 in 2028
inputs:
  gross: 60000
steps:
  - net: gross - 42000
  - tax: net * 0.05
expected:
  net: 18000
  tax: 900
```

**2. Decision: flat 15% or actual costs, freelancer earning OMR 80,000 with OMR 20,000 of real costs.** Actual costs win: OMR 900 against OMR 1,300. This illustrates the annual liability under arts 1, 11, 28 and 29: take the OMR 42,000 threshold from gross income, then deduct the selected source costs. Article 31 separately requires art. 44 payers to calculate advance withholding on gross income without these deductions; reconcile against the annual liability. The example assumes eligible unregistered self-employment, no other income, no loss or exemption, and an available three-year cost election.

```oa-check
name: Freelancer flat costs against actual costs
inputs:
  gross: 80000
  actual: 20000
steps:
  - net: gross - 42000
  - flat_costs: gross * 0.15
  - tax_flat: (net - flat_costs) * 0.05
  - tax_actual: (net - actual) * 0.05
expected:
  tax_flat: 1300
  tax_actual: 900
```

## Ask the client first

- Which tax year is the question about? Before 2028 this new PIT Law is not operative; separately test registered business income and legacy non-resident service withholding.
- Days in Oman in the year?
- Omani or not, and is any pay earned abroad?
- Which of the eleven income sources, and how much of each?
- Is any activity in the commercial register? If so, the Income Tax Law applies instead (art. 10).
- Which exemptions apply (pension, education, health, home loan)?

## Sources

| Source | URL | Read on |
|---|---|---|
| Personal Income Tax Law, RD 56/2025, official Tax Authority-hosted gazette issue 1602, pp. 7 to 31 (all 25 PDF pages visually read; decree and law arts 1 to 76) | https://tms.taxoman.gov.om/portal/documents/d/taxportal/-56_2025-1?download=true | 2026-11-01 |
| Tax Authority, PIT FAQs (all 20 read) | https://tms.taxoman.gov.om/portal/web/taxportal/personal-income-tax-faqs | 2026-11-01 |

Not yet confirmed: the Executive Regulations of RD 56/2025, due within a year of publication (decree art. 2), which we did not find on the Tax Authority site or in the portal page list, so return form, employer remittance dates and detailed exemption controls remain open; capital gains for individuals before 2028 (no tax on the same reasoning, no separate source opened); whether non-resident individuals have any Oman tax on pay in 2026 other than art. 18 bis withholding on services.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-11-03. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `om-income-tax` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/om-income-tax. If neither is available, confirm every figure against the official source pages cited above before relying on it.