The Shura Council of Oman has in a significant move advanced the draft bill on Personal Income Tax (PIT), first introduced in 2022, to the State Council. The new tax, if passed, may impact wealthy Omani citizens and expatriates with high income.

Oman’s main revenue sources are oil and gas. The PIT would positively tap into other sources that would propel the country to achieve its economic goals.

For many years now, the PIT has been on the cards. The government wanted to propose a tax regime exclusively targeting those in the high-income category.

The initial draft bill of 2022 suggested that tax rates be in the 5% to 9% range, differing for residents and non-residents.

Omani citizens, who have a net income exceeding $1,000,000, would be taxed under PIT, whereas the current tax structure in Oman revolves around corporate income.

Non-residents who receive specific payments also fall into the existing framework.

However, those with any personal income are exempted.

Foreign nationals on the other hand are taxed on Oman-sourced income exceeding $100,000. – editor@nrifocus.com