Oman
Why it Matters?
Oman has become the first country in the Gulf region to impose a personal income tax to mobilise more funds for economic development.
What You Should Know?
Oman becomes the first Gulf country to impose Personal Income Tax (PIT), starting January 2028.
The PIT will apply only to annual incomes above 42,000 Omani Rials (~$109,000), targeting the top 1% earners.
The other five Gulf Cooperation Council (GCC) countries, including Saudi Arabia, the UAE, and Qatar, do not levy income tax.
The move aims to diversify public revenue and reduce reliance on oil income, in line with Oman Vision 2040.
PIT is part of efforts to enhance financial stability and strengthen the fiscal sustainability framework.
PIT implementation supports long-term economic growth, credit rating stability, and aggregate demand.
The measure aligns with Oman’s Tenth Five-Year Plan (2021–2025) to sustain social and service spending.