Oman delays income tax plans, citing slow economy

Oman, poised to become the first Gulf country to introduce a personal income tax, has postponed the measure until its economy gains strength.

The move, first outlined in 2022, was a bold step in a region reliant on energy sales for government revenue, allowing for tax-free policies. Under the initial draft bill, foreign nationals earning over $100,000 annually would face a 5-9% tax starting in 2026, while Omanis with global incomes exceeding $1 million would be taxed at 5%.

Experts cited by AGBI noted that the tax proposal was “unpopular” and would have undermined Oman’s regional competitiveness. The government now plans further discussions on the draft, with analysts suggesting the measure is likely “a can that they will kick down the road.”