Latest news with #SaidbinMohammedAl-Saqri
8 hours ago
- Business
Oman plans to impose personal income tax, a first among Gulf states
DUBAI, United Arab Emirates -- Oman has rolled out plans to levy personal income tax as part of a broader push to move the sultanate's economy away from reliance on hydrocarbons, the official Oman News Agency said Sunday. The move, issued by royal decree, is a first among the six-member oil-rich Gulf Cooperation Council. However, the 5% tax won't be imposed until 2028. Only those who make upward of $109,000 annually — the top 1% of earners in Oman — will be required to pay it, the Gulf state said. It's unclear whether this will inspire other nations in the area to follow suit, though the International Monetary Fund has predicted that Gulf states may need to impose new taxes in the coming years to diversify government revenues. The lack of income tax so far has been a boon for development in the Gulf, helping to attract migrant workers to the region. But for Oman, the introduction of the income tax 'will further prioritize financial stability by diversifying revenue sources' that will help shelter the country from 'fluctuations' in the global energy market, Minister of Economy Said bin Mohammed Al-Saqri said He added that oil and gas revenues can account for up to 85% of the nation's public income, depending on the market. "The tax serves as a new revenue stream to diversify public income sources and mitigate risks associated with reliance on oil as the primary revenue source," Al-Saqri said. Oman has been weighing the personal income tax for several years, and its introduction follows other fiscal reforms. In 2020, it rolled out a program to cut down public debt and boost economic development. The move, Al-Saqri said, is part of Oman's broader Vision 2040 project, which hopes to turn the country into a technology-based economy.
Yahoo
9 hours ago
- Business
- Yahoo
Oman plans to impose personal income tax, a first among Gulf states
DUBAI, United Arab Emirates (AP) — Oman has rolled out plans to levy personal income tax as part of a broader push to move the sultanate's economy away from reliance on hydrocarbons, the official Oman News Agency said Sunday. The move, issued by royal decree, is a first among the six-member oil-rich Gulf Cooperation Council. However, the 5% tax won't be imposed until 2028. Only those who make upward of $109,000 annually — the top 1% of earners in Oman — will be required to pay it, the Gulf state said. It's unclear whether this will inspire other nations in the area to follow suit, though the International Monetary Fund has predicted that Gulf states may need to impose new taxes in the coming years to diversify government revenues. The lack of income tax so far has been a boon for development in the Gulf, helping to attract migrant workers to the region. But for Oman, the introduction of the income tax 'will further prioritize financial stability by diversifying revenue sources' that will help shelter the country from 'fluctuations' in the global energy market, Minister of Economy Said bin Mohammed Al-Saqri said He added that oil and gas revenues can account for up to 85% of the nation's public income, depending on the market. "The tax serves as a new revenue stream to diversify public income sources and mitigate risks associated with reliance on oil as the primary revenue source," Al-Saqri said. Oman has been weighing the personal income tax for several years, and its introduction follows other fiscal reforms. In 2020, it rolled out a program to cut down public debt and boost economic development. The move, Al-Saqri said, is part of Oman's broader Vision 2040 project, which hopes to turn the country into a technology-based economy. Gabe Levin, The Associated Press Sign in to access your portfolio
Winnipeg Free Press
9 hours ago
- Business
- Winnipeg Free Press
Oman plans to impose personal income tax, a first among Gulf states
DUBAI, United Arab Emirates (AP) — Oman has rolled out plans to levy personal income tax as part of a broader push to move the sultanate's economy away from reliance on hydrocarbons, the official Oman News Agency said Sunday. The move, issued by royal decree, is a first among the six-member oil-rich Gulf Cooperation Council. However, the 5% tax won't be imposed until 2028. Only those who make upward of $109,000 annually — the top 1% of earners in Oman — will be required to pay it, the Gulf state said. It's unclear whether this will inspire other nations in the area to follow suit, though the International Monetary Fund has predicted that Gulf states may need to impose new taxes in the coming years to diversify government revenues. The lack of income tax so far has been a boon for development in the Gulf, helping to attract migrant workers to the region. But for Oman, the introduction of the income tax 'will further prioritize financial stability by diversifying revenue sources' that will help shelter the country from 'fluctuations' in the global energy market, Minister of Economy Said bin Mohammed Al-Saqri said He added that oil and gas revenues can account for up to 85% of the nation's public income, depending on the market. 'The tax serves as a new revenue stream to diversify public income sources and mitigate risks associated with reliance on oil as the primary revenue source,' Al-Saqri said. Oman has been weighing the personal income tax for several years, and its introduction follows other fiscal reforms. In 2020, it rolled out a program to cut down public debt and boost economic development. The move, Al-Saqri said, is part of Oman's broader Vision 2040 project, which hopes to turn the country into a technology-based economy.
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First Post
10 hours ago
- Business
- First Post
Oman to become first Gulf country to impose income tax
In a bid to diversity revenue sources and reduce public debt, Oman has decided to impose personal income tax. This would make Oman the first Gulf country to impose income tax. read more Omani men pass in front of Canadian cafe and bake shop Tim Hortons in City Center Mall in Muscat, Oman, February 11, 2019. Picture taken February 11, 2019. (Reuters/Hamad I Mohammed) Oman has announced the imposition of personal income tax, becoming the first Gulf country to do so. The move to collect income tax is part of Oman's attempt to diversify revenue sources and reduce public debt. In the petroleum-rich Gulf region, countries do not impose a personal income tax. Firstly, governments earn plenty of revenue from oil and gas. Secondly, zero personal income tax attract high net worth individuals. Thirdly, these countries make up for revenue lost from foregoing income tax with corporate income taxes, value-added tax (VAT), customs duties and fees. STORY CONTINUES BELOW THIS AD The personal income tax collection will start in Oman in 2028. What we know of Oman's income tax? Oman will collect 5 per cent personal income tax on taxable income from people earning more than 42,000 Omani rials ($109,091) per year starting 2028, according to Reuters. '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 news agency quoted Omani tax authority as saying. The tax authority said such a tax will apply to around 1 per cent of the Omani population. Economy Minister Said bin Mohammed Al-Saqri was quoted as saying by Bloomberg that the measure will reduce reliance on oil revenues by diversifying public revenue while maintaining social spending. Even as no other Gulf country has announced such a measure, experts have said that might change in coming years as expenditures of governments rise and revenue sources remain stagnant, leading to deficits. Saudi Arabia and Bahrain are set to have deficits this year. The International Monetary Fund (IMF) has said that more Gulf countries may introduce personal income tax in coming years, particularly as they prepare for a world in which fossil fuel loses
Mint
10 hours ago
- Business
- Mint
Oman to impose income tax on top earners, becomes first Gulf state to do so. Details here
Oman has announced its plans to become the first Gulf nation to impose an income tax on its citizens, reported the news agency Bloomberg on Monday, 23 June 2025. This strategic move is Oman's efforts to reduce its dependence on earnings from its crude oil exports. Sultanate of Oman's Minister of Economy, Said bin Mohammed Al-Saqri, highlighted the need for the nation to diversify its public revenues to reduce reliance on oil income while maintaining the social spending levels. The government has decided to impose a 5 per cent income tax on people of the nation who have an annual income of 42,000 rials ($109,000) or above, according to the agency report. However, this will not be in effect until 2028, as per a local media outlet. The Ministry also said that this move will mean that the top 1 per cent of the economy's earners will have to pay tax in Oman, as per the report. According to the news agency's report, no other Middle Eastern Gulf country that is part of the Gulf Cooperation Council (GCC) has income tax on its citizens. Nations like Saudi Arabia, the United Arab Emirates, and Qatar, apart from earning high revenues from oil exports, also earn from foreign workers. Oman's move to impose an income tax on its citizens is expected to be closely monitored by the neighbouring Middle Eastern nations. 'Oman is looking to progress with fiscal reforms while still remaining competitive. This is especially at a time when high-net-worth individuals are moving to the region,' Monica Malik, the chief economist at Abu Dhabi Commercial Bank, told the news agency. 'While the scope is narrow, it will still be a significant fiscal development in the region.' Saudi Arabia and Bahrain are the two outliers who are expected to have fiscal deficits this year, compared to other GCC nations, which are likely to have solid fiscal balances, according to the agency report. The report also cited the International Monetary Fund (IMF), which said that Gulf nations will eventually need to impose some taxes to diversify their revenues in case the demand for oil drops in the future. The Sultanate has raised funds for the government through a $2 billion initial public offering of its state energy company's exploration and production unit in 2024, as the nation looks for other sources of income for the economy. Oman's income tax 'could act as a catalyst to other GCC countries implementing the tax as well in the future,' Malik told the news agency. According to the OEC data, Oman exported crude oil worth $29.3 billion in the year 2023, with its top importer being China. This export data marks the Gulf nation as the 15th largest crude petroleum exporter in the world.
