The Shura Council of Oman presented a draft income tax law to the State Council on 27 June, 2024.
The initial draft of the income tax law, introduced in 2022, proposes a tax on high-income earners in the Sultanate. The government has been discussing the proposal for over a decade and recently submitted it to the State Council for consideration.
The draft law proposes a tax rate of 5% for citizens and 9% for foreigners, though under varying conditions. Foreigners will be subject to income tax if their annual earnings surpass USD 100,000, whereas citizens will be taxed on net incomes exceeding USD 1 million.
The Shura Council also explored options for recovering VAT (value-added tax) levied on a beneficiary’s first residential property.
The exact rates have not been finalised at the time of writing.
If the law goes into effect, it will make Oman the first country in the GCC to impose income tax.
Implementing a personal income tax aligns with the country’s efforts to diversify its revenue streams and wean its dependence on oil.
