Oman plans to impose personal income tax, a first among Gulf states

Oman plans to introduce personal income tax in 2028, the first such tax in the Gulf Cooperation Council (GCC). The 5% tax will apply to the top 1% of earners, those making over $109,000 annually.

This measure is part of broader efforts to diversify its economy from oil dependency. The plan, announced via royal decree, aims to enhance financial stability. Economy Minister Said bin Mohammed Al-Saqri stated it will help mitigate risks from fluctuations in global oil markets, which currently account for 85% of public revenue. This aligns with Oman’s Vision 2040 for a technology-driven economy.