The Sultanate of Oman reduced the income tax rate for small and medium enterprises for the years 2020 and 2021, while granting long-term residency for foreign investors, as part of a series of measures and incentives aimed at supporting the economic growth.
The Sultanate of Oman plans to impose income taxes in 2022, to become the first Gulf country to impose this type of tax.
During the presentation of the Minister of Finance for the economic plan 2024, he expected that this tax would be imposed on individuals with high incomes without specifying any additional details, pointing out that "the initiative to impose an income tax is still under study as the Sultanate plans to find ways to diversify the economy, and has approved the imposition of a value-added tax by 5 percent, provided that it will take effect from next April."
The value-added tax will be imposed on most of the goods and services in addition to the goods imported into the Sultanate, with some exceptions specified in the law, as according to the law, the tax will not include the sectors of health care, education, financial services, basic foodstuffs, and supplies for people with disabilities. The decision aims to support the achievement of Oman's goals in reducing dependence on oil and other hydrocarbon products as main sources of state revenue, and it will also contribute to improving public services and continuing the development of infrastructure in the future, according to the statement.
Source (Al-Arabiya.net, Edited)
