Oman: 16 income sources exempted from individual tax

New law imposes 5% tax on annual income above 42,000 riyals

- BY FAHAD AL MUKRASHI Correspondent

Oman has announced key exemptions under its new Personal Income Tax Law, which is set to come into effect on January 1, 2028.

The law introduces a 5 per centr tax on individuals earning more than 42,000 Omani riyals annually. It outlines 16 types of income that are exempt from personal income tax under Article 25. These include:

■ Salaries received by members of diplomatic missions.

■ Living allowances paid to Omani residents working in diplomatic missions.

■ Income earned abroad by a tax resident for 18 months following a change in residency.