Oman moves to become first Gulf state to impose personal income tax
Oman, among the smaller Gulf economies, launched a medium-term fiscal programme in 2020 to reduce public debt, diversify revenue sources, and spur economic growth, which has improved public finances.
Oman, which still remains largely reliant on oil revenue, will impose a 5% tax on taxable income for individuals earning over 42,000 Omani rials ($109,091) per year starting from 2028, according to the decree.
"The law also includes deductions and exemptions that take into account the social situation in the Sultanate of Oman, such as education, healthcare, inheritance, zakat, donations, primary housing," the country's tax authority said in a statement.
The Gulf country added that the tax would apply to about 1% of the population.
($1 = 0.3850 Omani rials)
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