Oman (OM)
Oman is one of the most welcoming and stable expat destinations in the Middle East, offering a unique blend of ancient Arabian heritage, dramatic natural landscapes, and a rapidly modernising economy.
2026 Annual Changes — Oman
Updated thresholds, benefits, and regulatory changes effective this year.
Oman's 2026 key changes: Golden Residency Programme relaunched August 2025 with entrepreneur threshold reduced to OMR 250,000 and new retiree category added; WHT on dividends remains suspended (Royal Directive January 2023); CIT small business income threshold is OMR 150,000; Oman digital ID (ROP Digital ID) legally recognised as equivalent to physical cards since September 2025. Omanisation quotas continue with sector-specific annual updates.
Key Changes for 2026
| Category | 2026 Value | Previous | Effective Date |
|---|---|---|---|
| Minimum Wage Minimum wage for Omani nationals unchanged; no statutory minimum for expatriate employees | OMR 325/month (Omani nationals only; unchanged since 2013). No statutory minimum wage for expats under Oman Labour Law. | OMR 325/month (unchanged since 2013) | Ongoing |
| Omanisation Targets Sector-specific quotas updated annually by Ministry of Labour (MoL) | Key 2026 sector quotas: Banking and finance: 90%+ for operational/clerical roles. Engineering/technical: varies by subsector. Retail: approximately 20–35% (check mola.gov.om for your specific industry classification). Non-compliant employers face hiring restrictions, financial penalties, and work permit restrictions. | Similar targets in 2025 with incremental increases | Annual update — MoL publishes updated ministerial decisions each January |
| VAT Rate VAT rate remains at 5% — unchanged since introduction April 2021 | 5% standard rate. Zero-rated: basic food staples, pharmaceuticals and medical equipment, educational services, financial services. Exempt: certain real estate transactions. Zero-rated list reviewed annually by OTA. | 5% (unchanged since April 2021) | Ongoing |
| Labour Law — Kafala Mobility Reforms Royal Decree 53/2023 amendments fully in effect; employee sponsor transfers easier | Employees may transfer employer sponsors with 1 month notice after completing probation. Ministry of Labour transfer fee: OMR 1 (nominal). Notice periods clearly codified: 30 days minimum. | RD 53/2023 phased in 2023–2025 | Fully effective from 2024, ongoing in 2026 |
| End of Service Gratuity (ESG) ESG calculation formula unchanged | 15 calendar days of basic salary per year for years 1–3. 1 calendar month of basic salary per year for years 4+. Basic salary only (not gross). Example: OMR 1,000 basic × 5 years = OMR 3,500 total ESG. | Unchanged | Ongoing under Labour Law |
| PASI Contributions (Omani nationals only) PASI contribution rates unchanged; expats are not enrolled in PASI | Total 21.5%: 7% employee + 14.5% employer. Distribution: 17.5% pension + 1% occupational injury + 1% unemployment + 2% employer social insurance. Expat employees make no PASI contributions. | Unchanged from 2025 | Ongoing |
| Corporate Income Tax (CIT) CIT rate unchanged; small business income threshold is OMR 150,000 (not OMR 100,000) | 15% CIT for standard companies. 3% reduced rate for small businesses with: gross income ≤ OMR 150,000, registered capital ≤ OMR 60,000, and ≤ 25 employees. OTA enforcement intensifying. | 15% (unchanged) | Ongoing. Annual CIT returns due within 3 months of financial year end. |
| Withholding Tax (WHT) WHT on royalties, management fees, and technical services at 10%; dividends WHT suspended by Royal Directive since January 2023 | 10% WHT on: royalties, management fees, consideration for technical services paid to non-residents. Dividends paid to non-residents: WHT suspended by Royal Directive (11 January 2023 — Accession Day) — currently 0%. Penalties for non-compliance on applicable WHT: up to OMR 10,000. | 10% rate on royalties/management fees (unchanged); dividend WHT suspended since January 2023 | Ongoing. OTA audit activity increased from Q3 2025. |
| Golden Residency Programme — Relaunched August 2025 Programme relaunched with entrepreneur threshold reduced and new retiree category added | Categories: (1) Investors — OMR 500,000+ in ITC property or Oman company; (2) Entrepreneurs — OMR 250,000 investment in Oman business (reduced); (3) Retirees — age 60+ with OMR 4,000/month provable income (pension, annuity, or overseas investment); (4) Specialists in priority sectors. 10-year renewable residency. No employer sponsor required. | Entrepreneur threshold was OMR 500,000; no retiree category | August 2025 relaunch (in force throughout 2026) |
| Oman Digital ID (ROP Digital ID) Mobile digital ID received legal recognition in September 2025 — legally equivalent to physical cards | ROP Digital ID app: legally valid for government interactions, law enforcement checks, banking, and administrative procedures as of September 2025. Register and manage at rops.gov.om. Physical cards remain valid and are not being eliminated. | Partial rollout in 2024–2025; full legal recognition September 2025 | September 2025 onwards |
| Mandatory Health Insurance (CMA) Mandatory expat health insurance continued under CMA supervision; confirm current fine schedule at cma.gov.om | Minimum mandatory coverage: inpatient hospitalisation OMR 20,000/year, emergency treatment, ambulance. All premiums paid by employer. Fine for non-compliance: verify current penalty at cma.gov.om. | Mandatory since CMA Resolution No. 34/2019 | Ongoing in 2026 |
| eVisa System Tourist eVisa updated in late 2025; single-entry and multi-entry have different fees | Single-entry tourist eVisa (30 days): OMR 20. Multi-entry tourist visa (30 days per visit, up to 1 year total): OMR 50. Processing: 1 business day. Over 100 nationalities eligible. Apply at rops.gov.om. | Single-entry processing was previously 3–5 business days | Updated Q4 2025, ongoing in 2026 |
| Free Zone Expansion Sohar, Duqm (SEZD), Salalah, and Al Mazunah free zones expanding capacity | 100% foreign ownership in designated free zones; 5–10 year tax holidays; no import/export duties within zone. SEZD expanding: new industrial clusters in chemicals, fisheries, and logistics. | Framework unchanged; physical expansion ongoing since 2023 | Ongoing in 2026 |
| Vision 2040 — Year 4 Milestones 2026 is Year 4 of Oman Vision 2040 implementation | Tourism contribution target: 3% of GDP. Non-oil revenue target: 45% of government revenue. Expansion in renewable energy, Duqm SEZ logistics, and technology sectors. SME development support expanded. | Year 3 milestones in 2025 | Annual progress review at vision2040.om |
| Cybercrime Law Enforcement Royal Decree 12/2011 remains actively enforced — social media content risks remain serious | Criminal penalties: up to 3 years imprisonment and OMR 3,000 fine for online content deemed insulting to the state, Sultan, Royal Family, or religion. Expatriates have been arrested and deported for social media posts. Exercise strict caution with all public social media content. | Enforcement level unchanged | Ongoing |
January Checklist
Actions to take each January when new rates take effect.
- 1
Check employer's Omanisation quota compliance — non-compliant employers face work permit restrictions.
- 2
Renew employer-provided health insurance before anniversary date — confirm CMA-compliant minimum coverage.
- 3
Register for or update ROP Digital ID if not yet done — legally valid digital identity for government services.
- 4
Check work visa and iqama expiry dates — apply for renewal at least 6 weeks before expiry.
- 5
Calculate accumulated ESG entitlement: (basic × 15 days × years 1–3) + (basic × 1 month × years 4+).
- 6
Verify VAT return schedule if company is VAT-registered — quarterly or annual returns per OTA registration.
- 7
Note dividend WHT is suspended (0%) since January 2023 — do not withhold on dividends paid to non-residents.
- 8
For SME businesses: confirm gross income threshold is OMR 150,000 (not OMR 100,000) for the 3% CIT rate.
- 9
Review international savings and pension contributions — no local pension for expats; build portable savings.
- 10
Check home country filing obligations: UK P85, US FBAR if bank accounts exceed USD 10,000, etc.
Where to Track Annual Changes
-
mola.gov.om (Ministry of Labour) — Omanisation quotas, Labour Law, ESG, work permit fees
-
taxoman.gov.om (OTA) — VAT, CIT, WHT rates, tax filing deadlines
-
cma.gov.om (Capital Market Authority) — mandatory health insurance standards and fines
-
rops.gov.om (Royal Oman Police) — visa policy, digital ID, iqama renewal
-
mhurp.gov.om — ITC property rules and transfer fees
-
vision2040.om — long-term policy targets and progress
-
timesofoman.com — English-language regulatory and business news
-
omanobserver.om — official English-language newspaper for Royal Decree summaries
All values are for the 2026 calendar year. Oman regulatory changes are enacted through Royal Decrees in the Official Gazette — available via mofa.gov.om. The dividend withholding tax suspension (0% since January 2023 Royal Directive) is a frequently misunderstood point — do not apply the 10% WHT rate to dividends paid to non-residents. The Golden Residency Programme was relaunched in August 2025 (not Q1 2026 as some sources state). For significant legal, tax, or immigration decisions, consult a qualified Omani lawyer or licensed financial adviser.
Annual Changes
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