Dawn
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14:33 Jun 23, 2025
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. The sultanate, which still remains largely reliant on oil revenue, will impose a five per cent 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. According to the state-run Oman News Agency (ONA), the plan also contributes to the objectives of Oman Vision 2040 by diversifying income sources an...