Personal income tax comes into effect in Oman from January 1, 2028
Oman's first Personal Income Tax Law, which will affect only 1 per cent of its high-earning population, will come into effect from January 1, 2028.
The new Personal Income Tax Law contributes to the objectives of Oman Vision 2040 by diversifying income sources and reducing reliance on oil revenues. The targets set are 15 per cent of GDP by 2030 and 18 per cent by 2040.
The law, issued by Royal Decree No 56/2025 (consisting of 76 articles across 16 chapters), will apply a 5 per cent tax rate on individuals earning over OMR42,000 (USD109,230/AED401,160) annually. It also includes deductions and exemptions for social considerations in Oman, such as education, healthcare, inheritance, zakat, donations, primary housing, and other factors.
The Authority added that the new tax system follows an in-depth study assessing its economic and social impact, based on income data from various government entities. It led to the establishment of a carefully considered exemption threshold, which ensures that approximately 99 per cent of Oman's population will not be subject to this tax.
Karima Mubarak Al Saadi, Director of the Personal Income Tax Project, confirmed that all necessary preparations and requirements for implementing the tax have been completed.
Speaking to Oman News Agency (ONA), Al Saadi said that an electronic system has been developed by the Tax Authority to promote voluntary compliance and has been linked with the departments concerned to ensure accurate income calculation and verification of tax declarations.
The Tax Authority has also strengthened its workforce through specialised training programs in line with the tax implementation requirements.
The Authority said the new tax aims to promote wealth redistribution among societal segments, enhancing social justice, while supporting the state budget and specifically financing part of the social protection system.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The National
36 minutes ago
- The National
There is a fine line between changing Iran and emboldening Israel's extremists
There is simply no credible way to believe that Israel is waging the current war against Iran all by itself, or that the US's role is limited to striking three nuclear sites over the weekend. The distance, the military imbalance and the geopolitical stakes make it clear: this war is being waged with deep western support, both militarily and through intelligence co-operation. And the objective? It appears military is no longer limited to reining in the Iranian nuclear programme. It's about reshaping the power dynamics within Iran itself. However, western powers would be playing with fire if backing this war is without a strategy for what comes after, as it means empowering a generation of hardliners in Israel, with many already embedded in its far-right government. It's true that Iran's defences, meticulously built since the end of the Iran-Iraq war in the 1980s, are being dismantled. Hezbollah no longer holds sway. The new Syrian government has shifted course. Iraqi militias have their hands tied. A glance at the map shows how exposed Iran now is, with its cities vulnerable, its buffer zones dismantled. Losing Syria as an ally was a decisive blow. Smuggling routes were cut. Border bases with Israel were lost. Syrian air space opened to Israeli jets. Syria, in effect, became a Trojan horse in this war. Now, western powers, especially in Europe, the UK and the US, see an opening to break Iran's regional hegemony. The demand for Tehran to completely halt uranium enrichment is one of the clearest signs that key European countries, for example, are shifting their positions to align themselves with Israel's escalating campaign. But Israel's war isn't a war for peace. It appears to be a campaign of revenge, fuelled by the illusion that Iran can somehow be fully controlled once broken. Figures like Itamar Ben-Gvir and Bezalel Smotrich, two extremist ministers already sanctioned by European governments, are capitalising on this moment. If Iran falls, they won't just claim that they have rewritten that country's future; they will reshape Israeli politics for years to come. The balance of power inside Israel could shift decisively to the far right, giving these ministers greater political weight, bigger parties and more control over policy. The fallout would be catastrophic. The same Israeli government now accused of war crimes in Gaza and beyond would feel vindicated and unleashed. There would be no restraint. Their agenda of expansion, annexation and ultra-nationalism would surge forward, cloaked in the glow of their military successes. This is one of the region's greatest current risks: an emboldened, extremist-led Israeli state driving the Middle East into years – possibly decades – of instability. For Prime Minister Benjamin Netanyahu, this war is personal. Despite having dominated Israeli politics for decades, he wants to erase his legacy of corruption, strategic failure and the October 7 catastrophe. He wants history to remember him not as the prime minister who failed to protect 1,200 Israelis from the Hamas-led attacks, but as the man who broke Iran. His legacy today lies in Tehran. Now the West must confront a sobering question: who is it really helping reshape the region? Because if Israel's extremists are allowed to dictate what comes next, this will not be a short war. It will be a new order: chaotic, bloody and boundless. There is a moral obligation for western governments backing this campaign to ensure that those they empower today cannot determine Israel's course tomorrow. Many Arab states have already warned of the perilous line the West is walking. But history suggests western strategy in this region rarely looks beyond the next headline. And if no one changes course, tomorrow could make today look like a warning shot by comparison.
Khaleej Times
39 minutes ago
- Khaleej Times
Israel-Iran conflict: 2 options for Tehran's response to US strikes
[Editor's Note: Follow our live blog for real-time updates on the latest developments in the Israel-Iran conflict.] Iran has vowed to retaliate for US air strikes on its nuclear facilities, and has two main options: attacking American forces in the region, and closing the strategic Strait of Hormuz. An advisor to Iran's supreme leader issued a warning on Sunday, saying any US base in the region that takes part in attacks was a "legitimate target". Disrupting traffic through the narrow Strait of Hormuz, a vital route for oil and gas, would send energy prices soaring in a global inflationary shock. Stay up to date with the latest news. Follow KT on WhatsApp Channels. Closing the waterway would be "extremely dangerous," Kaja Kallas, the European Union's top diplomat, said on Monday. Here are two scenarios for Iran's response and their possible implications" Strait of Hormuz The narrow, U-shaped seaway snaking between Iran and the Arabian Peninsula is the gateway for Gulf energy shipments to global markets, carrying one-fifth of the world's oil and liquefied natural gas exports. Closing the 50-kilometre (30-mile) wide channel could spike oil to $120 a barrel, according to Deutsche Bank research, raising prices of transport, food and utilities around the world. "It's in the best interest of all Middle Eastern countries to keep the Strait of Hormuz open and prevent any supply disruption," Rystad Energy senior analyst Lu Ming Pang wrote last week. Currently, traders do not appear too concerned. Brent crude was trading at $76 on Monday, little changed from Friday's close. "Looking at the oil price this morning, it is clear that the oil market doesn't assign a very high probability of (a closure) happening," said Bjarne Schieldrop, chief commodities analyst at SEB bank. The big question is whether Iran is prepared to detonate this economic hand grenade. Despite threats in the past, including in 2011 as oil sanctions loomed, it has not pulled the pin. According to a senior European official, the Iranians do not have the means to block the strait "long-term", but they could hamper shipping. But "it would be a form of suicide to do that," the official said. "The effect on Israel would be close to zero, the effect on themselves immense, as well as on the United States, Europe and China." Iranian forces have nearly 200 fast patrol boats that can fire anti-ship missiles or torpedoes, plus mine-laying vessels, according to the International Institute for Strategic Studies. But the US Fifth Fleet, a major naval force, is stationed across the Gulf in Bahrain, and Iran remains under daily fire from Israeli warplanes and drones. Iran's own energy exports, in spite of sanctions, remain an important source of income for the world's ninth-biggest oil-producing country. US bases With United States military bases spread around the Gulf countries to Iran's west, there is no shortage of potential targets. Kuwait, in a legacy of the 1990 Gulf War, houses about 13,500 US forces, while the biggest US base in the region is Al Udeid in Qatar. The US Fifth Fleet, covering the Gulf, Red Sea and parts of the Indian Ocean, is based in Bahrain, and about 3,500 US personnel are stationed at Al Dhafra Air Base in the UAE. Increased US involvement in the Iran-Israel war risks attacks "on US interests, US bases and such across the region", said Renad Mansour, senior research fellow at Chatham House. "The US attack on Iran has now meant that this war is between Israel, the United States and Iran, which means that across the region, Iran may seek to target the US," he added. However, this option is also fraught for Iran as it risks isolating itself from Gulf states that enjoy good relations with Washington. "Tehran is unlikely to strike Gulf Arab states," said Andreas Krieg, a senior lecturer at King's College London.
UAE Moments
an hour ago
- UAE Moments
Oil Prices Hit Five-Month High After US Strikes on Iran
Oil prices rose to a five-month high on Monday, June 23, after the US struck Iran's nuclear sites over the weekend. Brent, the benchmark for two-thirds of the world's oil, rose by 0.48 per cent to $77.38 a barrel, while West Texas Intermediate increased by 0.50 percent to $74.21 per barrel. In early trading, Brent's price spiked by 5.7 percent to $81.40, which is its highest level since January this year. Iran's state-owned media cited a legislator on Sunday, June 22, revealing that the country's parliament agreed to close the Strait of Hormuz, which is the gateway to almost a fifth of the world's daily oil output. However, the country's national security council is yet to make a final decision, according to the report. If this were to happen, oil prices could skyrocket to $150 a barrel, according to analysts. On the same day, US Secretary of State Marco Rubio requested that China stop Iran from closing the strait since China is Iran's key oil importer. The war between Iran and Israel began on Friday, June 13, which led to an escalation of attacks between the two countries, closure of air spaces, cancellation of flights, and extensive evacuations.
