Tax revenues reach $5.4bn
Corporate tax and VAT higher
Personal income tax in 2028
Oman’s tax revenues beat the official forecast to reach OR2.08 billion ($5.4 billion) last year, helped by business growth.
In its 2024 budget, Oman estimated the contributions from corporate tax and value added tax at $5.1 billion, but the actual returns were 5 percent higher, the Ministry of Finance said.
In 2023, Oman’s total tax income was $5.3 billion.
Oman charges corporate income tax at 15 percent and VAT at 5 percent. It will also be the first country in the Gulf to charge personal income tax when the 5 percent levy is introduced in January 2028.
Oman posted a budget surplus of $1.4 billion last year, thanks to higher oil revenues. It sold oil at an average price of $82 per barrel, a third higher than the forecast of $60 per barrel.
The surplus and tax revenues will help reduce the country’s debt, which stands at $40 billion.
Oman relies heavily on its oil production of 1 million barrels per day, which provides 72 percent of its national revenues.
On Monday Oman also released more details of its personal income tax plans, according to a report in the Oman Observer.
There will be 11 sources of taxable income, the newspaper wrote, quoting the country’s Official Gazette.
Earnings exceeding OR42,000 ($110,000) will be taxable, but there will be exemptions and deductions for education, healthcare expenses, housing loans and some donations, the Observer said.
The 11 taxable sources are:
Salaries and wages excluding pensions
Self-employment
Leasing
Royalties
Interest – income from bank deposits, savings accounts, loans, and investment certificates
Dividends and capital gains
Real estate asset disposal
Retirement pensions and end-of-service benefits
Awards and prizes
Grants and donations
Membership rewards – payment for serving on boards, including state and shura councils.
