ALBAWABA- The Shura Council of the Sultanate of Oman has submitted a draft law to the State Council proposing an income tax of between 5% and 9%. This significant development in Oman's financial policy aims to tax both citizens and foreigners, though in different ways.
Abu Obaidah vows continued resistance and predicts inevitable victory against Israeli occupationUnder the proposed law, residents will be subject to income tax if their annual income exceeds $100,000, while citizens will be taxed only if their net income surpasses one million dollars. The initial law was presented in 2022, targeting high-income earners.
Mustafa Salman, CEO of United Securities Company, noted that the income tax is a new concept in the Gulf region, which historically has not imposed significant taxes. He highlighted that value-added tax (VAT) was first introduced in the UAE, followed by Oman and Saudi Arabia, with varying rates.
Salman acknowledged the challenges in assessing the pros and cons of income tax in the Gulf region but emphasized the necessity of adapting to some form of taxation in the future. Preliminary studies on the tax have been conducted and submitted to the State Council, with the possibility of further review.
Despite these new tax proposals, Oman achieved a budget surplus of 147 million riyals ($382 million) by the end of April this year. The state's public revenues totaled 3.744 billion riyals ($9.74 billion), a 15% decrease year-on-year, while public spending fell 7% to 3.6 billion riyals ($9.36 billion).
