MUSCAT: Oman will not implement income tax on individuals unless all conditions are prepared, the country’s Minister of Finance has confirmed on Thursday.
Speaking on the sidelines of a press conference to reveal the 2025 budget, His Excellency Sultan Salim Al Habsi said “no decision has been taken yet to apply income tax on individuals.”
“Income tax will not be applied unless the conditions are prepared to be applied,” Al Habsi said.
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When asked regarding a proposal to raise the Value Added Tax (TAX) instead of imposing income tax, the Minister had this to say: “Raising VAT will be affected by every citizen, while income tax will be affected by those whose income exceeds only 30,000 and represent 1% of the population of the Sultanate.”
As per the draft income law, individuals who are earning monthly salaries of above RO 2,500 (over RO 30,000 income annually) will be subjected to income tax once it is implemented.
In December last year, the State Council voted favourably to postpone the implementation of the Individual Income Tax Law. The Economic and Financial Committee said that an “in-depth study’ needs to be done before implementing the law.
