WORLD
Oman plans to impose income tax on top earners to diversify govt revenue
- IBJ Bureau
- Jun 24, 2025
Oman plans to levy personal income tax as a part of a broader push to move the sultanate’s economy away from reliance on hydrocarbons.
The tax would be a first among the six-member, oil-rich Gulf Cooperation Council (GCC). The 5 per cent tax will start in 2028 and will only be required of those who make upward of $109,000 annually, the top 1 per cent of earners in Oman.
The plan was issued recently by royal decree and reported by the official Oman News Agency.
It is unclear whether this will inspire other nations in the area to follow suit, though the International Monetary Fund has predicted that Gulf States may need to impose new taxes in coming years to diversify government revenues.
The lack of income tax so far has been a boon for development in the Gulf, helping to attract migrant workers to the region.
But for Oman, the introduction of the income tax “will further prioritise financial stability by diversifying revenue sources” that will help shelter the country from “fluctuations” in the global energy market, Minister of Economy Said bin Mohammed Al-Saqri has said.
He has added that oil and gas revenues can account for up to 85 per cent of the nation’s public income, depending on the market.
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