Personal tax in Bahrain and Oman
What residents pay today and what has been announced for the coming years.
In short
Bahrain and Oman do not tax employee salaries. Bahrain charges 10% VAT and Oman 5%. Oman plans a 5% tax on very high incomes from 2028.
- Bahrain VAT
- 10%
- Oman VAT
- 5%
- Income tax
- 0% (Oman 2028: high earners)
- Social insurance
- Unemployment 1% in Bahrain
Step by step
Tick each step as you finish it. Open a step to see what to do.
Bahrain deducts 1% for unemployment insurance.
Monthly
Documents checklist
Do’s and don’ts
Do
- Keep payslips
Don’t
- Don’t ignore home-country obligations
Common questions
Is there inheritance tax?
No, but Sharia inheritance rules may apply to estates without a will.
Official links
Background and more detail
Bahrain
- No personal income tax
- VAT 10%
- Expat employees contribute 1% of salary to unemployment insurance
- Large multinationals pay a 15% domestic minimum top-up tax from 2025
Oman
- Currently no personal income tax on salaries
- Oman has announced a personal income tax from 2028 on high earners, with income above about OMR 42,000 a year taxed at 5%. Check the Tax Authority for the final rules.
- VAT 5%
What this means for you
For most employees, take-home pay is close to gross salary. Keep payslips and records in case you need proof of tax residence for your home country.
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