Oman: Income Tax Deferred Until Conditions Are Suitable, Targeting Only 1% of the Population

The Omani government has announced that income tax will only be implemented under favorable conditions. This tax will apply exclusively to individuals with an annual income exceeding RO 30,000 (approximately $78,000 per year or $6,500 per month, equivalent to RO 2,500 per month).

This initiative is expected to affect only 1% of Oman’s population, aligning with the government’s economic diversification strategy under Oman Vision 2040.

In 2024, the government raised approximately RO 1.4 billion ($3.6 billion) through existing taxes, including corporate tax, selective tax, and Value-Added Tax (VAT). The VAT, which applies to all citizens, continues to serve as a significant contributor to state revenue.

The Minister of Finance emphasized that income tax would not be implemented unless conditions are suitable to minimize its impact on the majority of the population.