This GCC country has just approved a draft law on personal income tax

The State Council and Majlis A’Shura in Oman have approved a draft law on personal income tax in the country.

The tax exemption limit has been raised to OMR50,000 to benefit the middle class, and the tax rate has been reduced to 5 per cent.

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End-of-service gratuity and other benefits will be exempt from taxes, as they are not considered sources of income.

According to a report in the Oman Observer, the tax will only be imposed under suitable conditions.

Oman’s Minister of Finance also stated that raising VAT (Value Added Tax) will affect all residents, whereas the income tax will impact just 1 per cent of the Sultanate’s population.

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Six other draft laws jointly issued by the councils include regulations on electronic transactions, public health, human organ and tissue transplants, individual income tax, special economic zones, and free zones.

Oman raised approximately OMR1.4bn in taxes in 2024, including corporate, selective, and VAT collections revenue.