28-01-2025
Shura, State Council approve draft Income Tax Law, with suggestions
Muscat: The State Council and the Majlis A'Shura Council joint session discussed areas of disagreement and approved the six draft laws.
The six draft laws were Electronic Transactions, Public Health, Transfer and Transplantation of Human Organs and Tissues, Financial Law, Individual Income Tax, Special Economic Zones, and Free Zones.
The draft law on personal income tax has been approved but with recommendations on some articles.
On the Personal Income Tax Law, it was agreed to raise the tax exemption limit to RO50,000 for the benefit of the middle class and reduce the percentage to five percent.
It was agreed not to include gratuity or other end-of-service perks as they are not considered sources of income.
Members agreed that the minimum income of RO30,000, which covered around 32,000 people, was proposed by the government according to a study conducted in 2019/2020.
Some members also suggested postponing the implementation of the law but if it is implemented the minimum income has to be raised and other recommendations should be also included.
The government has said that the Income Tax will not be imposed unless conditions are suitable for its application.
The Minister of Finance added that raising the Value-Added Tax will all citizens, while the income tax will only affect around one percent of the Sultanate's population.
Around RO1.4 billion was raised in 2024 from taxes, which include corporate, selective, and value-added taxes.
