Taxes on salaries in Oman 2026

Is there tax on salaries in Oman in 2026?

No. Oman has no income tax on salaries in 2026, for Omanis or expats. For Omanis, the only gap between gross and net pay comes from Social Protection Fund contributions; expats receive their full salary.

But this will change: the Personal Income Tax Law has been issued and takes effect on 1 January 2028. See the next section.

What is Oman's new income tax and when does it start?

The Personal Income Tax Law was issued by Royal Decree 56/2025 on 22 June 2025, published in the Official Gazette on 30 June 2025, and applies from 1 January 2028. The tax is 5% on taxable income, which is the part of annual gross income above 42,000 Omani rials after exemptions and costs.

A tax resident is someone who stays in Oman for more than 183 days in a year. Gross income includes salaries, self-employment, rent, profits and more, and anyone whose gross income exceeds 42,000 rials must file a return within 6 months of the end of the year. Exemptions in the law include zakat and donations up to 5% of gross income, and the sale of your main home under conditions.

In practice the tax will only affect people whose annual income exceeds 42,000 rials, roughly 3,500 rials a month. This calculator does not include it because it is not in force in 2026.

What is the social protection rate for Omanis?

The Social Protection Law issued by Royal Decree 52/2023 has applied since 1 January 2024 and brought the retirement schemes together under the Social Protection Fund. An Omani employee has 7.5% deducted for old-age, disability and death insurance and 0.5% for job security insurance, 8% in total.

The employer pays 11% for old-age, disability and death, 1% for work injuries, 0.5% for job security, 1% for maternity leave, and 1% for sick and unusual leave from 19 July 2026.

The contribution wage is capped at 3,000 rials a month for the old-age and work injury branches, while job security, maternity and sick leave are charged on the full wage. Example: an Omani earning 1,000 rials has 80 rials deducted each month.

Do expats pay social insurance in Oman?

In 2026 no contribution is deducted from an expat's salary. The law allows non-Omanis to be covered by some branches, but Royal Decree 60/2025 postponed applying the work injury branch to them until 5 years after the law was issued, which is July 2028.

The bigger change for expats is the savings scheme: the employer will pay 9% of basic pay each month into the Social Protection Fund instead of the end-of-service gratuity. It starts on a date set by the fund's board, no later than 4 years after the law was issued, which is July 2027.

How do I calculate end-of-service gratuity in Oman?

Article 61 of the Labour Law issued by Royal Decree 53/2023 says a worker who does not benefit from the Social Protection Law, meaning an expat, is entitled to a gratuity of at least one month's basic pay for each year of service, with part years counted pro rata, based on the last basic pay. Service before the law was issued is included.

Example: basic pay of 600 rials and 6 years of service gives 3,600 rials. The law does not reduce the gratuity if you resign, but it can be withheld if you are dismissed for one of the serious reasons in Article 40.

This gratuity applies until the savings scheme starts. At that point the employer can settle the earlier period by paying it to the worker or transferring it to the savings scheme, based on basic pay at the settlement date.

VAT and corporate tax

VAT in Oman is 5% under Royal Decree 121/2020, with a zero rate for some supplies set out in the law.

Income tax on companies and establishments is 15% under Article 112 of the Income Tax Law. Since 1 January 2025, a top-up tax under Royal Decree 70/2024 brings the tax on entities of large multinational groups up to 15%.

Freelancing in Oman

Until the end of 2027 there is no tax on an individual's self-employment income that is not registered in the commercial register. From 2028 this income counts towards gross income for personal income tax, and you can deduct 15% of it as costs or your actual expenses.

An activity registered in the commercial register falls under the income tax law for establishments and may need to register for VAT.

Practical tips for employees in Oman

If your income is close to 42,000 rials a year, start organising your documents now, because the first return will be for 2028. Note that gross income includes benefits in kind, such as housing provided by the employer.

If you are an expat, keep your contract and payslips, and watch for the Social Protection Fund's announcement of when the savings scheme starts, because it will change how your end-of-service money is paid.

What changed in 2026?

• The sick leave and unusual leave insurance branch (1% paid by the employer for Omanis) starts on 19 July 2026, 3 years after Royal Decree 52/2023 was issued, as amended by Royal Decree 60/2025.
• Royal Decree 60/2025 postponed applying the work injury branch to non-Omanis until July 2028, and extended the deadline for starting the savings scheme for non-Omanis to 4 years after the law was issued (July 2027 at the latest).
• The Personal Income Tax Law was issued by Royal Decree 56/2025: 5% on income above 42,000 rials a year, applying from 1 January 2028, so there is no tax on salaries in 2026.

For expats

For expats in Oman: your salary is not taxed and nothing is deducted from it in 2026. Your right when you leave is the end-of-service gratuity of one month's basic pay for each year, one of the highest gratuities in the Gulf. Get ready for two changes: the savings scheme that will replace the gratuity before July 2027, and the 2028 income tax, which will only affect you if your income exceeds 42,000 rials a year and you are tax resident (more than 183 days). The new law lets you deduct foreign tax paid on the same income, which matters if you also have income in your home country.

Income tax rates

Oman does not tax employees' salaries in 2026. The only possible deduction is a social insurance or pension contribution, which can differ between nationals and expats.

Other taxes that matter in Oman

Capital gains

In 2026 Oman has no income tax on individuals, so there is no tax on gains from selling shares or property. The Personal Income Tax Law issued by Royal Decree No. 56/2025 starts on 1 January 2028 at 5% on annual gross income above 42,000 rials, and exempts the sale of your main home. We could not confirm from an official source how gains on shares will be treated: secondary summaries say returns from shares and property are taxable sources of income, and the details await the executive regulations.

Dividends

In 2026 there is no tax on dividends received by a resident individual, because there is no income tax on individuals. We could not confirm from an official source how they will be treated once personal income tax starts in 2028.

Crypto

In 2026 there is no tax on individuals' crypto gains, because there is no income tax on individuals. We could not confirm from an official source the regulatory framework for trading virtual assets and licensing their service providers, because the Financial Services Authority website was not available when we checked.

Inheritance

Oman has no inheritance or estate tax, and the Tax Authority states that inheritance is among the exemptions in the Personal Income Tax Law that starts in 2028. Muslims' estates are divided under the Islamic inheritance rules in the Personal Status Law.

Property and wealth

There is no annual property tax and no wealth tax. A fee is charged when a property transfer is registered; we could not confirm its rate from an official source. From 2028, residential rent counts as income for personal income tax if gross income exceeds 42,000 rials, even though it is exempt from VAT.

Tax residency

In 2026 there is no tax residence test for individuals, because they pay no income tax. Under the Personal Income Tax Law that starts in 2028, a person, Omani or not, is tax resident if they stay in Oman for more than 183 days, consecutive or not, in the year. A resident is taxed on income from Oman and abroad, and a non-resident only on income from Oman. The Tax Authority offers residency certificates for individuals among its online services. We could not confirm their conditions, fees or validity from an official source.

Retirement and pensions

Pensions are not taxed in 2026. From 2028, pensions count towards gross income under the Personal Income Tax Law, so tax applies only if a person's gross income exceeds 42,000 rials a year. The Social Protection Fund manages Omanis' pensions. We could not confirm from an official source whether there is a retirement visa or a remote work visa.

Cost to the employer

For an Omani in the private sector, under the Social Protection Law (Royal Decree No. 52/2023 as amended) the employer pays: 11% for old-age, disability and death insurance, 1% for work injuries, 0.5% for job security, 1% for maternity leave, and 1% for sick leave, which started on 19 July 2026 (before that the total was 13.5%). The employee pays 7.5% and 0.5%. The contribution wage for the old-age and work injury branches is capped at 3,000 rials a month, and the government contributes a share whose rate we have not confirmed. The employer pays no contributions for expats in 2026: work injury insurance for expats has been postponed to July 2028, and the savings scheme at 9% of basic pay starts on a date set by the fund before July 2027. Until then, an expat is owed an end-of-service gratuity of at least one month's basic pay for each year.

Social insurance

Sources

1. Social Protection Law issued by Royal Decree 52/2023 (amended text: Articles 52, 68, 70, 90, 115, 116, 121, 123, 127, 128, 136, 137 and 139), Official Gazette 1503, via the Qanoon website Official source · checked 2 October 2026
2. Royal Decree 60/2025 amending Article 6 of Royal Decree 52/2023 (deferring work injury cover for non-Omanis and the savings scheme), Official Gazette 1604 Official source · checked 2 October 2026
3. Labour Law issued by Royal Decree 53/2023 (Article 61) Official source · checked 2 October 2026
4. Royal Decree 56/2025 issuing the Personal Income Tax Law (5%, 42,000 rials, in force from 1 January 2028), Official Gazette 1602 Official source · checked 2 October 2026
5. Income Tax Law issued by Royal Decree 28/2009 and its amendments (Article 112: 15%) Official source · checked 2 October 2026
6. Value Added Tax Law issued by Royal Decree 121/2020 (Article 36: 5%) Official source · checked 2 October 2026
7. Royal Decree 70/2024 issuing the law on top-up tax on constituent entities of multinational groups (15%, from 1 January 2025) Official source · checked 2 October 2026