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.
Tax & Payslip Guide
Understanding your taxes in Oman — tax year Calendar year: 1 January – 31 December (for corporate tax). No personal income tax return is required for individuals..
📊 Income Tax Brackets
| Income from | Income to | Rate | Notes |
|---|---|---|---|
| 0 | ∞ | 0% | Oman levies no personal income tax on individuals regardless of nationality or income level. This applies to both Omani citizens and foreign residents. Salary income, rental income from personal property, and investment returns are generally tax-free for individuals. |
🏛️ Social Contributions
PASI contributions are mandatory only for Omani employees. Expatriate employees are fully exempt from PASI but receive End of Service Gratuity instead (see below).
Mandatory employer obligation for expatriate employees. Not deducted from salary. Calculated as: 15 working days' basic pay per year for the first 3 years of service, then 1 month's basic salary per year thereafter. Paid as a lump sum on departure or end of contract.
VAT-registered businesses collect 5% VAT on taxable goods and services and remit quarterly or annually to the Oman Tax Authority (OTA). Registration mandatory at OMR 19,250/year turnover.
Paid by employers to the Ministry of Labour for each expatriate worker on their payroll. Not deducted from the employee's salary. Part of the overall cost of hiring expat staff.
🛒 VAT Rates
VAT was introduced in Oman on 16 April 2021. Mandatory registration threshold: OMR 19,250/year; voluntary registration: OMR 9,625/year. Filing: quarterly for businesses above the mandatory threshold, annually for smaller businesses. OTA website: taxoman.gov.om
🧾 Sample Payslip Decoder
🌍 Special Expat Tax Rules
Oman is one of the most tax-favourable countries for expatriates globally. There is no personal income tax, no capital gains tax (for individuals), no inheritance tax, and no wealth tax. Expats working in Oman retain 100% of their net salary after social insurance exemptions. The only taxes affecting expats are: VAT at 5% on purchases (since April 2021), corporate tax if running a business (15% standard, 10% SME rate for income under OMR 100,000 if qualifying), and potential home-country tax obligations depending on their country of residence.
📋 Double Tax Treaties
Oman has Double Taxation Avoidance Agreements (DTAA) with: UK, France, Germany, Netherlands, Italy, India, Pakistan, China, South Korea, Japan, Singapore, Malaysia, Mauritius, Seychelles, Iran, Lebanon, Tunisia, South Africa, and several other countries. Check the OTA website (taxoman.gov.om) for the current treaty list. Key point: employment income earned in Oman is generally exempt from home-country tax under most treaties, but residents of treaty-partner countries should verify their specific situation with a qualified cross-border tax advisor.
Tax & Payslip
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