Oman Introduces Personal Income Tax: A Bold Step Towards Economic Diversification
Oman is set to introduce a personal income tax by 2028 as part of its efforts to diversify its economy away from hydrocarbons. The tax will affect the top 1% of earners and is a first among Gulf Cooperation Council countries. This move is part of Oman's Vision 2040 project.
- Country:
- United Arab Emirates
In a groundbreaking economic shift, Oman plans to impose a personal income tax by 2028, affecting the top 1% of earners. The initiative marks a significant departure for the Gulf Cooperation Council's oil-rich member states, aiming to lessen dependence on hydrocarbons.
Announced via royal decree, the new 5% tax will target those earning over $109,000 per year. Economic diversification is central to this move, as Minister of Economy Said bin Mohammed Al-Saqri emphasizes the necessity to stabilize finances amid global energy fluctuations.
This income tax introduction aligns with Oman's Vision 2040, seeking to transition the nation towards a technology-oriented economy. Previous fiscal reforms, such as reducing public debt and encouraging economic growth, demonstrate Oman's commitment to financial stability and development.
(With inputs from agencies.)
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