Since the bill is nearing the end of its legislative approvals, it is likely to be introduced in 2025
Oman is expected to roll out personal income tax, making it the first country in the GCC to do so, some time next year.
This comes after the kingdom’s Shura Council advanced the draft law to the State Council. Since the bill is nearing the end of its legislative approvals, it is likely to be introduced in 2025. The initial bill was drafted back in 2020.
Analysts expect other Gulf Cooperation Council (GCC) countries to also introduce the personal income tax, however, not in the near future. Oman could be used as a template to launch the tax in other GCC countries.
As reported by Khaleej Times last year, Haji Al Khouri, undersecretary of the UAE’s Ministry of Finance, said that the UAE has no plan to introduce personal income tax. Global financial institutions have been encouraging the UAE and other GCC countries to introduce new taxes in order to expand their revenues, away from the petrodollars. The UAE recently introduced a 9% tax on corporate incomes to boost its revenues.
Most expatriates and nationals in Oman, will not be impacted by this new tax regime. Quoting reports, Emirates NBD Research said that foreign nationals will be liable to PIT of 5% to 9% on income from Oman over $100,000. For Omani citizens, the threshold will be orders of magnitude higher at net global income over $1 million, which would be taxed at 5%.
Source: Khaleej Times
