Latest news with #royalDecree
Arab News
7 hours ago
- Business
- Arab News
Oman to be first Gulf country to impose personal income tax
RIYADH: Oman will become the first country in the Gulf to impose a personal income tax, as the oil producer works to diversify its revenue stream. The sultanate will impose a 5-percent levy on taxable income for individuals earning over 42,000 Omani rials ($109,091) per year starting from 2028, according to a royal decree. The Gulf country added that the tax would apply to about 1 percent of the population. The move comes after Oman launched a medium-term fiscal program in 2020 to reduce public debt, diversify revenue sources, and spur economic growth, which has improved state finances. 'The law also includes deductions and exemptions that take into account the social situation in the Sultanate of Oman, such as education, health care, inheritance, zakat, donations, primary housing,' the country's tax authority said in a statement. The law was implemented following an 'in-depth study to assess the economic and social impact,' and income data collected from various government entities was used to set the exemption threshold. 'The results showed that approximately 99 percent of the population in the Sultanate of Oman is not subject to this tax,' the authority said. The statement added that the electronic system has been designed to enhance voluntary compliance and is linked with relevant institutions to ensure accurate calculation of individuals' income and to verify the accuracy of submitted tax returns. The tax will contribute to achieving social solidarity and will not include wealth, such as land ownership. It will be imposed on the annual income specified by law and includes 'all cash amounts and in-kind benefits received by the individual,' the authority said. The move aims to complete the tax system in line with the economic and social situation in the sultanate, and the tax revenue will go toward supporting the social protection program, 'with sustained cooperation,' it added. The move will support the objectives of Oman Vision 2040, which targets reducing dependence on oil by achieving 15 percent of gross domestic product from non-oil sources by 2030 and 18 percent by 2040. 'It will also contribute to achieving social justice by redistributing the wealth among the segments of society, provide support to the general budget of the country, and be directed in particular to finance part of the costs of the social protection system,' the authority said.
Al Arabiya
9 hours ago
- Business
- Al Arabiya
Oman to become first Gulf country to impose personal income tax
Oman issued a royal decree to become the first country in the Gulf to impose a personal income tax, its tax authority said on Sunday, as the small oil producer works to diversify its revenue stream. Oman, among the smaller Gulf economies, launched a medium-term fiscal program 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 percent 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 percent of the population. ($1 = 0.3850 Omani rials)
Reuters
9 hours ago
- Business
- Reuters
Oman moves to become first Gulf state to impose personal income tax
DUBAI, June 23 (Reuters) - Oman issued a royal decree to become the first country in the Gulf to impose a personal income tax, its tax authority said on Sunday, as the small oil producer works to diversify its revenue stream. 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)
