01
In 2026, the new PIT is not yet applied
Royal Decree 56/2025 provides for the Personal Income Tax Law to come into force from the beginning of 2028. Therefore, you cannot show 5% as an already existing payroll tax. But the owner and employer already need to prepare data, contracts and payroll.
The date of adoption of the law and the start date of taxation differ. Each consultation must clearly indicate to which period the conclusion relates.
02
What is officially confirmed
- Legal act
- Royal Decree 56/2025
- Structure
- 76 articles in 16 chapters
- Effective
- From the beginning of 2028
- Threshold
- Total income over 42,000 OMR per year
- Rate
- 5% taxable income
- Scope
- Types of income and conditions established by law
03
Threshold is not a ready-made formula
The official communication relates the tax to the excess of total income of 42,000 OMR, and the rate to taxable income. To calculate, you need to determine the types of income included, exemptions, deductions, period, residence and declaration procedure.
04
Individual income card
Salary, bonus, allowances, benefits and director's remuneration.
Independent activity, partnership and other business income.
Dividends, interest, securities and other investment income.
Rent, alienation and use of real estate or other assets.
Each category is confirmed by law and future clarifications; economically similar payments may have different treatment.
05
A visa does not equal tax residence
Tax residence, source of income and treaty applicability are analyzed separately. For an international manager, records are maintained of days of presence, the location of family and center of interests, place of work, place of company management and residence certificates.
- Days
- Actual entry and exit calendar
- Source
- Where work is done and income is generated
- Other states
- Residence and declarations in other jurisdictions
- Treaty
- Tie-breaker, type of income and relief method
- Evidence
- Visa, lease, payroll, bank and tax certificates
06
Exemptions, deductions and treaty relief
The threshold does not replace the calculation of taxable income. Until 2028, implementing rules, forms and official guidance on deductible amounts, exempt income, foreign tax, family-related reliefs, filing and payment are monitored.
07
Owner and director
Salary, director fee, dividend, shareholder loan, reimbursement and personal expense must have different documents and corporate grounds. Before 2028, it is useful to remove the mixing of personal and corporate flows and formally approve the remuneration policy.
08
What changes for the employer
- Payroll data
- Unified data on salary, allowances, bonus and benefits
- Contracts
- Clear separation of cash and non-cash remuneration
- Mobility
- Tracking days, places of work and secondment
- Systems
- Willingness to store data and generate reports
- Communication
- Correct explanation of net/gross without promises before rules
09
Plan for 2026–2028
- 01
Map all the incomes and countries of each key person.
- 02
Maintain a calendar of presence and proof of residence.
- 03
Separate salary, dividend, loan and reimbursements.
- 04
Follow Executive Regulations, forms and Tax Authority guidance.
- 05
Update payroll, contracts and personal tax files by 2028.