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Oman to Introduce Income Tax on High Earners
Muscat November 8, 2022:
After two years of contemplation, the Gulf state of Oman is on the cusp of introducing income tax in the region. A draft law to levy income tax on high earners was passed on November 6, 2022 by the country’s Shura Council. Subject to approval from the Council of Ministers and a final endorsement from Sultan Haitham, the tax will then become law.
“Income tax is on track. We expect personal income tax to go live by late 2023 or in 2024 provided that it receives all approvals including the royal decree.” a source revealed on the condition of anonymity.
Oman is more likely to bring personal income tax in the range of 5-9%, which is not yet confirmed. The buzz on income tax draft law has evoked mixed reactions from citizens in different salary brackets. Most feel a percentage cut of 3-5% will be okay and anything above that can hit their income. Middle-income earners were also concerned that if the new law is approved what would it mean for them in the long run. However experts opine that such a levy would be a good idea overall for the country’s finances.