Oman imposes income tax on high earners

Dubai: Oman to introduce a personal income tax for high earners after 2026, as reported in a recent report.

In July, the Majlis Al Shura, the lower house of the Omani parliament, approved a draft income tax law, the first of its kind in the Gulf Cooperation Council (GCC) region, sending it to the State Council, the upper house, for final approval.

Currently, there is no income tax for Omani citizens or expatriate residents.

Under the proposed tax brackets, foreign nationals earning over $100,000 (Dh367,000) in Oman would be taxed at a rate of 5 to 9 per cent, while Omani citizens would face a 5 per cent tax on global income exceeding $1 million (Dh3.67 million).

Gulf states have already implemented various tax measures to support development and decrease dependence on oil and gas revenues.

Oman’s existing tax framework includes corporate income tax, value-added tax (VAT), and excise tax.

The government plans to concentrate on enhancing corporate tax administration and collection instead of increasing the 5 per cent VAT rate or government fees to boost non-hydrocarbon revenue.