Oman to Become First Gulf Nation with Personal Income Tax

Oman is making history as the first country in the Gulf Cooperation Council (GCC) to announce the introduction of a personal income tax. This significant change to the nation’s fiscal policy is set to take effect in 2028.

New Tax to Affect High-Income Earners

The new tax will apply only to the highest earners in Oman, specifically those with annual incomes exceeding $109,000. This threshold represents the top 1% of income earners in the country, ensuring that the majority of Omani citizens remain unaffected by the new tax.

5% Tax Rate Designed to Boost Government Revenue

The personal income tax is set at a rate of 5% for those earning above the specified threshold. The Omani government aims to use this new revenue stream to bolster public finances and support economic diversification efforts.