Tax system in Oman
Oman has no personal income tax in force through 2027. Royal Decree 56/2025 introduces a 5% personal income tax from 1 January 2028 for a natural person whose total annual income exceeds OMR 42,000, with the tax calculated on taxable income after permitted deductions, exemptions and losses.
Omani companies, establishments and permanent establishments generally pay 15% tax on net taxable income. A qualifying small establishment can use a 3% regime if it satisfies the statutory capital, revenue, employee and activity conditions; petroleum exploration income is taxed at 55% under the Income Tax Law.
Oman also applies 5% VAT, excise tax on specified goods, 10% statutory withholding tax on certain payments to non-residents, customs and property-registration charges, and social-protection contributions. Large multinational groups can be subject to a 15% Pillar Two top-up tax from financial years beginning on or after 1 January 2025.
Tax rates at a glance
- Income tax
- 0% through 2027 / 5% from 2028Future PIT
- Wealth tax
- 0%
- Inheritance tax
- 0%
- Capital gains tax
- 0% personal now
- Corporate tax
- 15% / 55% petroleum
- Dividend tax
- 0% currently
- VAT
- 5%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Gulf-based foundersEmployees and expatsRegional operatorsInvestorsEnergy businesses
Watch out for
- Oman is currently low-tax for individuals, but it is not accurate to describe the country as permanently income-tax-free. The PIT law is enacted and scheduled to apply from the beginning of 2028.
- A 15% corporate headline does not cover every business cost. VAT, customs, excise, withholding tax, licence fees, property-registration charges, payroll contributions and sector-specific obligations can change the result.
- The statutory withholding-tax page still lists 10% on dividends and interest, but a Royal Directive suspended withholding on dividends and interest paid to non-resident investors. Royalties, software, management, research and development, and qualifying service payments remain the main withholding-tax checks.
- Oman has a substantial treaty network, but treaty residence, beneficial ownership, permanent-establishment and source rules still need to be tested for the actual payment or business model.
Frequently asked questions
Does Oman have personal income tax?
Not through 2027. Oman’s enacted PIT law starts on 1 January 2028 and applies a 5% rate to taxable income of a natural person whose total annual income exceeds OMR 42,000, subject to the law’s deductions and exemptions.
Is Oman a tax-free country?
No. Oman currently has no personal income tax, but it taxes company profits, petroleum income, consumption, certain non-resident payments and excise goods. Personal income tax is also scheduled to begin in 2028.
Which taxes matter most in Oman?
The main items are 15% corporate income tax, the 55% petroleum rate, 5% VAT, excise tax, statutory withholding tax, customs and property-registration charges, social-protection contributions, and the future 5% personal income tax.