Oman becomes the first Gulf Cooperation Council (GCC) country to introduce personal income tax (IT) in the region. From 2028, the Sultanate will impose a 5% IT on those whose annual income exceeds 42,000 Omani riyals.

The aim of introducing the tax is to reduce dependence on oil revenues, besides diversifying income sources of the Omani government. The law, which would apply to all residents – both citizens and non-citizens of Oman – is expected to come into effect beginning 2028. All mandatory processes required for the IT imposition have been completed.

The 42,000 Omani riyal annual threshold safeguards low- and middle-income residents.

Karima Mubarak Al Saadi, director of the Personal Income Tax Project, said the law included deductions and exemptions as well, relating to education, healthcare, donations, primary housing, inheritance, and zakat, among other factors. – Image by freepik – editor@nrifocus.com