Oman will stick to its income tax implementation target of 2024, SICO Research said in a report, citing Minister of Economy Dr. Said Al Saqri.
“There is no delay in the target set by 2024 for the implementation,” the minister said during a recent conference.
Currently, the government continues to evaluate the structure, the thresholds for high income, and how it can best be implemented, he added.
The Omani government had proposed plans to implement income tax on high earners in its 2020 medium-term fiscal plan, the report said.
In the first half of 2022, Oman reported 424 million rials ($1.1 billion) in value-added tax (VAT), almost achieving its estimated annual target of 450 million rials.
Oman implemented VAT in April 2021. Other GCC countries do not apply income taxes. However, the UAE recently introduced a corporate tax.
Under the new regulation, as of June 1, 2023, UAE businesses with profits over 375,000 dirhams will be subject to a 9 percent federal tax. Free zone businesses will be exempt from the new rule, provided they meet certain requirements for local supplies, cross-border taxes, and transfer pricing.
