MUSCAT: The State Council and Majlis Al Shura on Tuesday approved the draft laws on personal income tax with recommendations on some articles.
On the Personal Income Tax Law, both State Council and Shura agreed to raise the tax exemption limit to RO 50,000 (annual income) for the benefit of the middle class and reduce the percentage to five per cent.
Both the Councils also agreed not to calculate the gratuity or other end-of-service benefits within the Personal Income Tax as they are not considered a sources of income.
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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. However, both
members of the Council agreed that the minimum income of RO 30,000, which covered around 32,000 people, was proposed by the government according to a study conducted in 2019/2020.
Some members also suggested to postpone the implementation of the law but if the law is implemented the minimum income has to be raised and other recommendations should be also included.
Early this month, His Excellency Sultan Salim Al Habsi, the country’s Minister of Finance had confirmed that Personal Income Tax Law will not be imposed “unless conditions are suitable for it to be implemented.”
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