Decree Blog

Last week, Oman took a groundbreaking step towards economic sustainability by being the first GCC country to introduce the long awaited personal income tax through Royal Decree 56 Issuing the Personal Income Tax Law. The impact that this law is expected to have on the economy and the relationship between the government and residents in Oman cannot be understated. However, it is also important to note that even though this law relates only to the taxation of individuals, it imposes a number of significant obligations on employers. This blog post will outline these key obligations under the Personal Income Tax Law that all companies in Oman need to be aware of to be in compliance with the law in their capacity as employers.

The Ministry of Finance (MOF) published in this week’s issue of the Official Gazette the Executive Regulation of the Public Debt Law, providing practical implementation details for the Public Debt Law that was issued back in 2023.

The Secretariat General of the Tender Board issued a new circular last month banning government entities from contracting with private sector companies that do not comply with Omanisation percentages.

You can read the circular in full in English below:

The Central Bank of Oman (CBO) issued last week the Regulatory Framework for Digital Banks. This regulatory framework sets the requirement for establishing a digital bank, creates two categories for digital banks, sets minimum capital requirements, restrictions on the activities for different digital bank categories, and progressive Omanisation percentages that increase over a period of five years, licensing conditions, and the requirements to present a business plan to obtain the license, among other things.

The Ministry of Social Development published in this weeks issue of the Official Gazette a new Governance Regulation of Social Welfare Institutions that aim to provide welfare services to the elderly.

The regulation covers matters such as the objectives of welfare homes, the conditions for admitting an elderly person to an elderly home, the conditions for volunteering at a welfare home, and the actions to be taken when an elderly person dies in a welfare home.

It is worth noting that the MOSD issued late last year a Governance Regulation of Temporary Welfare Institutions that aims to provide services for women, children and victims of human trafficking.

The new Governance Regulation of Social Welfare Institutions enters into force tomorrow. You can read in full in English on the link below:

Last month, the Ministry of Transport, Communications, and Information Technology (MTCIT) issued Oman’s first policy for governing the use of artificial intelligence (AI) systems. This policy was issued in the form of a circular, and therefore it is not a strictly binding legal document published in the Official Gazette.