Latest news with #KarimaMubarakAlSaadi
Gulf Insider
8 hours ago
- Business
- Gulf Insider
Oman To Impose First Personal Income Tax For High Earners, Effective January 2028
Oman has officially enacted its first Personal Income Tax Law, with implementation set for January 1, 2028, marking a historic policy shift aimed at fiscal diversification and economic sustainability under Vision 2040 . The new law, issued by Royal Decree No. 56/2025 by Sultan Haitham bin Tarik, will apply a 5% tax rate on individuals earning over OMR 42,000 annually. This high exemption threshold means approximately 99% of Oman's population will not be affected, according to the Tax Authority. Comprising 76 articles across 16 chapters, the law will target specific income sources while integrating social exemptions—such as education, housing, healthcare, zakat, and donations—to ensure fairness and social justice. The move complements Oman's long-term fiscal consolidation strategy and aims to increase non-oil revenues to 18% of GDP by 2040. Enforcement Date : January 1, 2028 : January 1, 2028 Tax Rate : 5% : 5% Exemption Threshold : OMR 42,000 per year : OMR 42,000 per year Impact : Only top 1% of earners affected : Only top 1% of earners affected Goals : Revenue diversification, fiscal stability, improved credit ratings : Revenue diversification, fiscal stability, improved credit ratings Social Protection: Revenue to support Oman's social protection system The law's executive regulations will be issued within a year of publication in the Official Gazette. The Tax Authority is also deploying an electronic tax compliance system, integrating government databases to ensure accuracy in declarations and promote voluntary compliance. Karima Mubarak Al Saadi, Director of the Personal Income Tax Project, noted that training, infrastructure, and legal frameworks are already in place. Educational guides for individuals and businesses will be rolled out in phases ahead of the law's implementation. Last year, Oman collected OMR 1.4 billion from corporate, VAT, and selective taxes. The personal income tax is expected to complement these revenues and bolster fiscal credibility, enhancing Oman's appeal to global investors. This landmark policy comes amid a regional trend of Gulf economies moving toward diversified revenue models as they reduce dependency on oil.
Khaleej Times
9 hours ago
- Business
- Khaleej Times
Oman to impose 5% income tax on high earners from 2028
Oman will impose five per cent income tax on people whose income exceeds 42,000 Omani riyals (approximately Dh400,000) from 2028. Under the Personal Income Tax Law issued by Royal Decree No. 56/2025, the aim of introducing income tax is to diversify income sources of the government and reduce dependence on oil revenues. The Sultanate will become the first Gulf Cooperation Council (GCC) country to introduce personal income tax in the region. The UAE and other Gulf introduced value-added tax (VAT) and corporate income tax. In addition, the UAE also levied tax on tobacco and carbonated drinks in order to encourage healthy lifestyles among the residents. According to Oman News Agency, the law will come into effect at the beginning of 2028. Karima Mubarak Al Saadi, director of the Personal Income Tax Project, told the Omani news agency that all necessary preparations and requirements for implementing the tax have been completed. However, there are some exemptions. The law also includes deductions and exemptions accounting for social considerations in the Sultanate of Oman, such as education, healthcare, inheritance, zakat, donations, primary housing, and other factors. Oman said a thorough study was conducted before implementation of personal income tax which carefully considered exemption threshold, revealing that approximately 99 per cent of Oman's population will not be subject to this tax.
