MUSCAT : The law, announced via royal decree, targets the top 1% of earners and includes strict enforcement measures to ensure compliance.
In a landmark move among Gulf Cooperation Council (GCC) countries, the Sultanate of Oman will implement a 5% personal income tax starting January 2028. The tax will apply only to those earning more than RO 42,000 annually, or roughly the top 1% of income earners in the country. The announcement was made on Sunday, June 22, 2025, through a royal decree and reported by the Oman News Agency.
The new legislation outlines severe penalties for those who attempt to evade or falsify their income declarations.
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Under Article 65 of the law, individuals who intentionally fail to file their returns on time, ignore tax authority requests, or withhold tax payments face fines ranging from RO 1,000 to RO 5,000. More serious violations—such as submitting false declarations or tampering with tax-related records—are addressed under Article 66, with punishments including imprisonment from one to three years and fines between RO 10,000 and RO 20,000.
The Minister of Economy Said bin Mohammed Al-Saqri emphasized that Oman’s reliance on oil and gas, which can contribute up to 85% of public income, leaves the economy vulnerable to global price swings.
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