Oman to Implement Income Tax for High Earners by 2026

Oman is set to introduce a personal income tax for high earners after 2026, as reported in a recent announcement.

In July, the Majlis Al Shura, the lower house of the Omani parliament, approved a draft income tax law, marking the first of its kind in the Gulf Cooperation Council (GCC) region. The draft was then sent to the State Council, the upper house, for final approval.

Currently, there is no income tax for Omani citizens or expatriate residents.

Under the proposed tax brackets, foreign nationals earning over $100,000 (equivalent to Dh367,000) in Oman would be taxed at a rate of 5 to 9 percent, while Omani citizens would face a 5 percent tax on global income exceeding $1 million (equivalent to Dh3.67 million).

Gulf states have already implemented various tax measures to support development and reduce dependence on oil and gas revenues.

Oman’s existing tax framework includes corporate income tax, value-added tax (VAT), and excise tax.

The government plans to focus on enhancing corporate tax administration and collection rather than increasing the 5 percent VAT rate or government fees to boost non-hydrocarbon revenue.

source Oman to Implement Income Tax for High Earners by 2026 | Banking – Gulf News