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Oman plans to impose personal income tax, a first among Gulf states
- Oman announced on June 23, 2025, that it will impose a five per cent personal income tax starting January 1, 2028, applying to residents earning over 42,000 Omani riyals annually.
- The government introduced this tax to diversify revenue sources beyond oil, reduce fiscal deficits, and maintain social spending amid regional economic pressures.
- The tax law comprises 76 articles and 16 chapters, excludes education, healthcare, housing, zakat, and donations, and will affect only about 1% of the population.
- Minister Said bin Mohammed Al-Saqri called it a conservative rate by global standards, while experts noted Oman’s tax could prompt similar GCC moves.
- This policy marks the first personal income tax in the Gulf Cooperation Council, reflecting Oman’s fiscal reform goals and may enhance investment appeal and credit stability.
40 Articles
40 Articles
Oman taxing the richest: 'It will be interesting to see if Muscat starts a trend'
COLUMN. By introducing a 5% income tax on the wealthiest Omanis starting in 2028, the sultanate becomes the first Gulf country to implement such a measure. It is a way to anticipate a decline in oil revenues as global crude prices continue to trend downward, writes Le Monde columnist Isabelle Chaperon.
Oman moves to become first Gulf state to impose personal income tax
Oman issued a royal decree to become the first country in the Gulf to impose a personal income tax, its tax authority said on Sunday, as the small oil producer works to diversify its revenue stream. Oman, among the smaller Gulf economies, launched a medium-term fiscal programme in 2020 to reduce public debt, diversify revenue sources and spur economic growth, which has improved public finances. The sultanate, which still remains largely reliant …
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