Tax Exemption in Oman for Low-Income Groups with Monthly Earnings of 2,500 Riyals: Potential Implementation of Tax Collection from 2026

Oman has announced that individuals earning less than OMR 2,500 per month or OMR 30,000 annually will be exempt from paying income tax. This decision marks a significant move toward broadening the country’s tax base, with the implementation likely to begin in 2026. Oman is set to be the first country in the GCC (Gulf Cooperation Council) to implement an individual income tax system.

Ahmed Al Sharqi, Chairman of the Economic and Financial Committee at Oman’s Al Shura Council, explained, “The income tax will apply to individuals whose annual income exceeds OMR 30,000.” He further added that the draft legislation on the individual income tax had undergone a thorough review, considering both its pros and cons, and deliberating on the best time for its implementation.

“We have amended more than 29 articles of the draft law, accompanied by an in-depth study on its economic impact,” Al Sharqi noted.

This move is part of Oman’s broader strategy to diversify its economy beyond oil and gas, with sectors like tourism playing an increasingly important role. Oman’s diverse cultural heritage and breathtaking landscapes are drawing more visitors, boosting eco-tourism as a significant contributor to the economy.