In a major policy shift, Oman has enacted its first Personal Income Tax Law, set to take effect on January 1, 2028. The move is part of the Sultanate’s Vision 2040 strategy, which aims to strengthen economic sustainability and reduce dependence on oil revenues. The new law, issued under Royal Decree No. 56/2025 by Sultan Haitham bin Tarik, introduces a 5% tax on individuals earning more than OMR 42,000 annually. According to the Tax Authority, this high exemption threshold means that 99% of Oman’s population will not be affected. Exemptions will apply to essential expenses and obligations, including: Education Housing...