Oman becomes first Gulf country to introduce personal income tax

Oman has decided to impose personal income tax on citizens, and will be the first Gulf nations to do so.

“The law will impose a 5% tax on the taxable income of natural persons whose gross annual income exceeds RO 42,000 (~₹94.77 lakh), derived from specific income types as defined by the law,” reported Oman News Agency. The taxes will come into effect in 2028, it said.

The Personal Income Tax Law issued by the Sultan consists of 76 articles distributed across 16 chapters, as per reports. It also noted that the exemption threshold ensures that “99% of Oman’s population” will not fall into the tax bracket.

The authorities also told the news agency that an electronic system is developed to promote voluntary compliance and “has been linked with other departments concerned to ensure accurate income calculation and verification of tax declarations”.