Oman to Introduce Personal Income Tax in 2028,First in GCC
These efforts fall under Oman’s Vision 2040 roadmap, which aims to transition the nation towards a knowledge based, diversified economy.
Oman has announced plans to implement a personal income tax starting in 2028, marking a significant policy shift within the Gulf region. The 5% levy will apply exclusively to individuals earning above $109,000 annually, effectively targeting the top 1% of the population.
This move, confirmed by royal decree on June 22, 2025, makes Oman the first among the six Gulf Cooperation Council (GCC) nations, traditionally reliant on oil wealth, to introduce such a tax. The reform is part of a broader strategy to ease the country's dependence on hydrocarbons and build a more resilient fiscal framework.
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Economy Minister Said bin Mohammed Al Saqri noted that energy exports can make up as much as 85% of Oman’s public revenue, depending on market trends. He stated that broadening the revenue base through taxation will help safeguard the economy against energy price volatility as reported by The Hindu.
The introduction of income tax follows several rounds of economic restructuring in recent years, including initiatives launched in 2020 to rein in public debt. These efforts fall under Oman’s Vision 2040 roadmap, which aims to transition the nation towards a knowledge based, diversified economy.
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