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Jurisdiction overview

Tax in Oman

Last reviewed: · by TaxProsRated editorial

Key points

Oman's Tax Authority administers no general personal income tax, corporate income tax at 15 percent flat, and VAT at 5 percent (GCC-harmonised). The 2024 Personal Income Tax Law announcement (effective from 2028) targets individuals earning above OMR 30,000 annually at 5 percent — Oman would be the first GCC peer to implement individual PIT.

0%
PIT now (individual)
15%
CIT flat (corporate)
5%
VAT (GCC rate)
2028
5% PIT — GCC first
OMANI CORPORATE FILER
Persona spotlight — meet an Omani corporate taxpayer

A regional services firm navigating 15% CIT and monitoring the 2028 PIT threshold for its senior expatriate team.

This Muscat-based professional-services firm files an annual CIT return by 30 April each year (four months after the December fiscal-year close) and submits quarterly VAT returns. Its CFO tracks the 2028 PIT threshold carefully: when the Personal Income Tax Law takes effect, senior staff earning above OMR 30,000 annually will face Oman's first-ever individual income charge at 5% flat.

Omani national employees contribute to PASI (Public Authority for Social Insurance). Expatriate employees are exempt from PASI contributions — a material payroll-cost difference the firm uses in workforce modelling.

Who is the tax authority?

Oman's Tax Authority, operating under the Ministry of Finance, administers Oman's tax system through its taxpayer portal at tms.taxoman.gov.om. Substantive law is set by:

  • Income Tax Law — Royal Decree 28/2009 with successive amendments (most recently raising CIT from 12% to 15%)
  • VAT Law — Royal Decree 121/2020, effective 16 April 2021
  • Personal Income Tax Law — announced 2024, effective from 2028 (the defining pending reform)

Oman is a founding member of the Gulf Cooperation Council (GCC) and its tax framework is coordinated with GCC-wide initiatives including the harmonised VAT regime and the pending GCC Pillar Two response.

Tax year and filing deadlines

Oman uses the calendar year (1 January to 31 December) as the standard fiscal year for corporate taxpayers. Annual corporate income-tax returns are due four months after fiscal year-end — meaning 30 April for calendar-year entities. VAT returns are submitted quarterly under the standard regime.

Oman tax year — key filing dates (calendar year) Oman calendar tax year — key dates JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Jan 1 Year opens Apr 30 CIT return due 4 months after Dec 31 Q2 VAT H1 quarterly return Q3 VAT Q3 quarterly return Dec 31 Year closes VAT quarterly filings · Q1 (Jan–Mar) · Q2 (Apr–Jun) · Q3 (Jul–Sep) · Q4 (Oct–Dec) CIT return 30 April applies to calendar-year entities · fiscal-year entities: 4 months after their year-end From 2028: personal income tax returns will also be required for individuals earning above OMR 30,000.
Source: Tax Authority, Oman (tms.taxoman.gov.om). Q1 VAT (Jan–Mar) return is also due quarterly — not shown above to avoid label collision with the CIT April marker.

Who is an Omani tax resident?

Oman currently has no general individual income tax — residency does not trigger personal-income-tax obligations for individuals as of 2024. The concept of individual tax residency has limited practical effect until the 2028 PIT law takes effect.

For corporate purposes, Omani tax residency is determined by incorporation in Oman or place of effective management within Oman. Omani-registered companies are subject to CIT on worldwide income; foreign companies with Omani permanent establishments are taxable on Oman-source income only.

When the 2028 Personal Income Tax Law takes effect, individual residency criteria will be introduced. Practitioners working with high-earning expatriates in Oman should begin tracking the legislative progression toward 2028 now — final implementing regulations will set the residency tests, thresholds, and filing mechanics.

PIT — 0% today, 5% from 2028

Oman currently levies no individual income tax. Employment income, investment returns, and other personal income face a 0% personal rate as of 2024. The 2028 Personal Income Tax Law changes this picture materially.

Current (2024–2027)
0%

No general individual income tax. Employment income, dividends, and investment returns are not subject to personal income tax. PASI contributions apply to Omani nationals only (not expatriates).

From 2028 (announced 2024)
5%

On income above OMR 30,000 annually. Flat rate. First GCC peer to implement individual income tax. Implementing regulations and residency definitions pending.

Oman PIT preview — current 0% vs 2028 5% threshold Oman PIT — current vs 2028 law 5% 0% 0% OMR 0–29,999 All income bands (now) 5% OMR 30,000+ From 2028 (flat rate) Rates effective from 2028 — not yet in force. OMR 0–29,999 band remains 0% under both regimes.
Source: Personal Income Tax Law announced 2024 (Government of Oman). Chart shows the anticipated 2028 rate structure — implementing regulations pending.

Corporate income tax

Oman's corporate income tax applies at 15% flat — raised from 12% under successive amendments to the Income Tax Law. A reduced rate applies for SMEs, and a separate petroleum regime governs oil and gas operators.

Standard CIT
15%

Flat rate on taxable income. Applies to most commercial and professional entities registered in Oman. Raised from 12% by successive amendments.

SME reduced rate
3%

Available to qualifying small and medium enterprises under the Establishment of SMEs Law. Eligibility criteria apply — turnover and ownership conditions must be met.

Petroleum income tax
55%

Separate petroleum income tax regime for oil and gas sector companies. Operates independently of the standard 15% CIT regime.

CIT featureDetail
Loss carryforward5 years
WHT on dividends (non-residents)10% (treaty rates apply)
Pillar TwoGCC-coordinated framework pending
Return due date30 April (4 months after 31 Dec year-end)
Filing portaltms.taxoman.gov.om

The 2028 PIT law — GCC first mover

Landmark — GCC regional first

Oman announced a 5% personal income tax law in 2024 — effective from 2028.

The Personal Income Tax Law targets individuals earning above OMR 30,000 annually at a 5% flat rate. This makes Oman the first Gulf Cooperation Council member to implement individual income tax — all other GCC peers (UAE, Saudi Arabia, Qatar, Kuwait, Bahrain) currently have 0% individual income tax. Practitioners advising high-earning expatriates in Oman should begin tracking the legislative progression toward 2028 now, including residency-definition regulations and payroll-withholding mechanics.

PASI (Public Authority for Social Insurance) contributions will remain Omani-national-only — expatriate employees will not be swept in by the 2028 law on the social insurance side.

VAT framework

Oman's VAT operates under Royal Decree 121/2020, effective 16 April 2021 — the last GCC member to implement the GCC-harmonised 5% VAT. The registration threshold is OMR 38,500 of annual taxable turnover. Returns are filed quarterly.

RateCategory
5%Standard rate — most goods and services
0%Zero-rated — exports of goods and services, international transport, medicines
ExemptFinancial services, residential property, education, healthcare

GCC Excise framework (also in force):

ProductExcise rate
Tobacco and tobacco products100%
Energy drinks100%
Sweetened beverages50%

All GCC member states apply the same Excise framework. VAT quarterly cycle applies from the registration date. Businesses with taxable supplies below OMR 38,500 may voluntarily register.

PASI — social insurance

Oman's Public Authority for Social Insurance (PASI) administers the mandatory social insurance scheme. A fundamental feature: PASI applies to Omani nationals only. Expatriate employees are exempt from both PASI contribution obligations.

PASI contribution rates (Omani nationals)
~17.5%
Employer contribution rate
7%
Employee contribution rate

These rates apply to Omani national employees only. Expatriate staff generate no PASI obligation — a material workforce cost consideration for employers with mixed national/expatriate workforces.

Cryptoassets

CBO position on cryptoassets

The Central Bank of Oman has declared cryptoassets are not legal tender in Oman.

Under the current 0% PIT framework, individual crypto gains face 0% personal income tax. This position changes when the 2028 PIT law takes effect — individual crypto gains above the OMR 30,000 threshold will be subject to the 5% rate. Corporate-entity crypto activity is subject to the standard 15% CIT regardless of the 2028 PIT timeline.

Currency framework — OMR pegged to USD

Omani Rial (OMR) — pegged to USD since 1986
0.385
OMR per 1 USD

The Omani Rial is fixed to the US Dollar at a rate of 1 USD = 0.385 OMR (approximately 1 OMR = 2.597 USD). This peg has been maintained since 1986 with no devaluation. USD-denominated contracts carry no FX volatility risk when reported in OMR. Tax thresholds — including the 2028 PIT threshold of OMR 30,000 — translate to approximately USD 77,900 annually at the fixed rate.

Treaty network — ~35 active DTAs

Oman has approximately 35 active double taxation agreements. The MLI was signed in 2020. Key treaty partners span South and South-East Asia, Europe, and the Middle East — reflecting Oman's trade and investment relationships.

Oman treaty network — ~35 active DTAs Oman — ~35 active DTAs India highlighted as primary trading-partner DTA UK France Germany Nether-lands Russia China Pakistan S. Korea/Singapore Mauritius/Malaysia Belgium/Jordan India top partner OMAN ~35 DTAs India highlighted · solid lines = bilateral DTA · MLI signed 2020 · ~35 total active agreements
Source: Ministry of Finance, Oman (mof.gov.om). Key partners also include Thailand, Vietnam, Indonesia, Philippines, Sri Lanka, Lebanon, South Africa, Tunisia, Romania, Bulgaria, Czech Republic, Morocco, Iran, Sudan.
Treaty featureDetail
Active DTAs~35 bilateral agreements
MLISigned 2020 — modifies covered treaties
WHT dividends (non-resident)10% (treaty rates override)
Key partnersIndia, UK, France, Germany, Netherlands, Russia, China, Pakistan, South Korea, Singapore, Thailand, Mauritius, Malaysia, Belgium, Jordan, Lebanon, South Africa, Tunisia

GCC cohort positioning

Oman sits in a unique position within the GCC: currently 0% PIT alongside its peers, but the only member with a confirmed 2028 implementation date for personal income tax.

GCC tax cohort — Oman positioning vs UAE, Saudi, Qatar, Kuwait GCC tax cohort — 5 jurisdictions Oman is the only GCC member with a confirmed individual income tax implementation (2028) TYPE A UAE 0% PIT 9% CIT (from 2023) 5% VAT First GCC CIT implemented 2023 No individual PIT TYPE B Saudi Arabia 0% PIT 20% CIT (foreign) 15% VAT Higher VAT rate than GCC harmonised No individual PIT TYPE C Qatar 0% PIT 10% CIT (foreign) No VAT yet GCC VAT framework not yet implemented No individual PIT TYPE D Kuwait 0% PIT 15% CIT (foreign) No VAT yet GCC VAT framework not yet implemented No individual PIT TYPE E Oman YOU ARE HERE 0% now / 5% 2028 15% CIT 5% VAT First GCC PIT from 2028 OMR 30k threshold
Sources: PwC Worldwide Tax Summaries + Tax Authority Oman. All GCC members enforce the Excise framework (tobacco 100%, energy drinks 100%, sweetened beverages 50%).

Common pitfalls for foreign practitioners and businesses

2028 PIT first-mover: begin tracking now

The 2028 Personal Income Tax Law is Oman's most consequential pending reform. Practitioners with high-earning expatriate clients in Oman should begin reviewing residency definitions, payroll-withholding mechanics, and threshold applicability now — implementing regulations will follow the announcement period.

CIT raised from 12% to 15%

Legacy modelling using the 12% CIT rate is out of date. The current standard CIT is 15% flat following successive amendments to Royal Decree 28/2009. Update any entity-level projections, transfer-pricing benchmarks, or financing cost models that assumed 12%.

Pillar Two — GCC-coordinated, pending

Oman participates in the GCC-coordinated Pillar Two (OECD global minimum tax) response. The framework is pending finalisation. In-scope multinational groups with Omani entities should monitor the GCC implementation timeline alongside the UAE and Saudi Arabia Pillar Two rollouts as leading indicators.

~35 DTAs + MLI (2020) — coverage check

Oman has approximately 35 active double taxation agreements, with the MLI signed in 2020 modifying covered treaties. Always verify whether a specific treaty partner is covered under the MLI and whether the relevant provisions have entered into force — not all covered treaties are in the same implementation state.

VAT 5% — Oman was last GCC to implement

Oman's VAT regime came into effect on 16 April 2021 — the last GCC member to implement. Businesses that were operating before April 2021 had a compressed registration and systems-readiness window. Confirm current VAT registration status, quarterly BAS cycle, and zero-rating eligibility for export-related supplies.

Petroleum Income Tax at 55%

Oil and gas sector companies operate under the separate Petroleum Income Tax regime at 55% — not the standard 15% CIT. Businesses with diversified operations straddling the petroleum and non-petroleum sectors need ring-fenced accounting to ensure correct regime application.

PASI — Omani nationals only, not expatriates

PASI social insurance contributions (~17.5% employer + 7% employee) apply exclusively to Omani national employees. Expatriate employees generate no PASI obligation. Misclassifying expatriates as subject to PASI — or failing to register Omani national hires — are both common compliance errors in mixed-workforce organisations.

GCC Excise on restricted products

Tobacco (100%), energy drinks (100%), and sweetened beverages (50%) face GCC Excise in addition to VAT. Importers, manufacturers, and distributors of these categories require separate Excise registration and compliance cycles distinct from the standard VAT regime.

When to engage an Omani tax professional

Oman — when to engage a tax professional decision flow When to engage an Omani tax professional Corporate entity or 2028 PIT in scope? CORPORATE HIGH EARNER CIT return + VAT cycle rate check 15% vs 3% SME Monitor 2028 PIT threshold OMR 30,000 annual income Oil/gas operations? Petroleum 55% regime applies DTA relief applicable? Check MLI-modified position All paths: engage a qualified Omani Tax-Adviser
All paths into Omani corporate or personal taxation warrant qualified professional input — the 2028 PIT reform makes early engagement especially important for high-earning expatriates.

Situations that warrant engaging a qualified Omani tax professional:

  • Filing a first annual CIT return — confirm 15% vs 3% SME rate eligibility and quarterly VAT cycle
  • Operating in the oil and gas sector — Petroleum Income Tax at 55% requires specialist knowledge
  • Cross-border transactions with non-resident counterparties — 10% WHT on dividends, DTA relief eligibility
  • High-earning expatriates earning above or approaching OMR 30,000 annually — 2028 PIT threshold monitoring
  • Loss carryforward positions — 5-year limit applies, losses must be properly documented
  • VAT registration at or above OMR 38,500 turnover — quarterly BAS cycle, zero-rating for exports
  • GCC Excise compliance for tobacco, energy drink, or sweetened-beverage operators
  • PASI registration and contribution obligations for Omani national employees
  • DTA relief claims and MLI-modified treaty positions — verify current in-force status per partner

You can find qualified Omani tax practitioners in the directory below.

This page presents general information. It does not constitute personal guidance for your specific situation. Tax rules change. Always verify current figures through the Tax Authority portal (tms.taxoman.gov.om) or with a qualified practitioner before filing.

Frequently asked

Who is the Omani tax authority?

Tax Authority, under the Ministry of Finance.

When are Omani tax returns due?

Corporate annual returns due 4 months after fiscal year-end. VAT quarterly. Personal income tax returns expected from 2028 under announced PIT framework.

Who is an Omani tax resident?

Oman has no general individual income tax currently. Corporate residency by incorporation or place of effective management. 2028 PIT framework will introduce individual residency criteria.

What are the Omani personal income tax rates?

No individual income tax as of 2024 - personal income 0 percent. 2028-effective PIT (announced 2024) targets individuals earning above OMR 30,000 annually at 5 percent flat - Oman first GCC peer for individual PIT. PASI for Omani nationals only.

How does Oman's corporate tax work?

CIT 15 percent flat (raised from 12 percent). Reduced 3 percent SMEs. Petroleum Income Tax 55 percent. Withholding non-resident dividends 10 percent. Pillar Two pending under GCC-coordinated framework. Tax losses 5 years.

What is the Omani VAT rate?

VAT 5 percent under GCC-harmonised framework (Royal Decree 121/2020 effective 16 April 2021). Zero-rated on exports. Registration above OMR 38,500.

How does Oman tax cryptoassets?

CBO advisory: not legal tender. No PIT means individual crypto gains 0 percent (subject to 2028 PIT framework). Corporate crypto activity subject to 15 percent CIT.

How many tax treaties does Oman have?

Approximately 35 active. MLI signed 2020. GCC member. Standard SOL framework.

Major tax firms in Oman

Verified directory of the largest accounting + tax practices operating in Oman. Listings are entity-level reference cards — claim flow is open to firm representatives.

Find a tax pro in Oman

Browse credentialed pros serving Oman — filter by specialty, language, and credential type.

Browse the Oman directory

Sources

The figures, dates, and rules on this page are sourced from the documents listed below. Where two sources disagree, both are listed.

  1. [1]Oman Tax Authority (opens in new tab)
    Tax Authority (Oman) · accessed
  2. [2]Income Tax Law - Royal Decree 28/2009 + 2028-effective PIT Law (announced 2024) (opens in new tab)
    Government of Oman · accessed
  3. [3]VAT Law - Royal Decree 121/2020 effective 16 April 2021 (opens in new tab)
    Government of Oman · accessed
  4. [4]DTC Agreements - Oman (opens in new tab)
    Ministry of Finance (Oman) · accessed
  5. [5]Oman (opens in new tab)
    PwC Worldwide Tax Summaries · accessed
  6. [6]Personal Income Tax Law - announced 2024 effective from 2028 - first GCC peer individual PIT (opens in new tab)
    Government of Oman · accessed
  7. [7]Petroleum Income Tax 55 percent (opens in new tab)
    Government of Oman · accessed
Important disclaimer

Informational only — not tax advice. This page summarises publicly available information about tax in Oman as of July 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.

TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.