Oman plans to impose 5% personal income tax in 2028 to reduce reliance on oil revenue

From Yahoo Finance: 2025-06-23 09:25:00

Oman plans to implement a 5% personal income tax in 2028 for those making over $109,000 annually, aiming to reduce reliance on oil revenue. This move is part of broader fiscal reforms to diversify the economy and stabilize public income sources, according to Minister of Economy Said bin Mohammed Al-Saqri.

The lack of income tax in Gulf states has attracted migrant workers, but Oman’s new tax aims to prioritize financial stability and reduce dependence on oil revenue. The introduction of income tax is part of Oman’s Vision 2040 project to transform into a technology-based economy and diversify revenue sources.

The International Monetary Fund predicts that Gulf states may need to impose new taxes to diversify government revenues in the future. Oman’s decision to introduce a personal income tax follows other fiscal reforms aimed at reducing public debt and boosting economic development. This move is part of a broader push to move away from reliance on hydrocarbons and adapt to fluctuations in the global energy market.



Read more at Yahoo Finance: Oman plans to impose personal income tax, a first among Gulf states