Oman plans to impose private revenue tax from 2028, first amongst Gulf States

Oman plans to levy private revenue tax as a part of a broader push to maneuver the sultanate’s economic system away from reliance on hydrocarbons.

The tax can be a primary among the many six-member oil-rich Gulf Cooperation Council. The 5% tax will begin in 2028 and can solely be required of those that make upward of $109,000 yearly — the highest 1% of earners in Oman.

The plan was issued Sunday (June 22, 2025) by royal decree and reported by the official Oman News Agency.

It’s unclear whether or not this can encourage different nations within the space to observe swimsuit, although the International Monetary Fund has predicted that Gulf states might must impose new taxes within the coming years to diversify authorities revenues.

The lack of revenue tax to this point has been a boon for growth within the Gulf, serving to to draw migrant employees to the area.

But for Oman, the introduction of the revenue tax “will additional prioritise monetary stability by diversifying income sources” that can assist shelter the nation from “fluctuations” within the world vitality market, Minister of Economy Said bin Mohammed Al-Saqri mentioned.

He added that oil and fuel revenues can account for as much as 85% of the nation’s public revenue, relying available on the market.

“The tax serves as a new revenue stream to diversify public income sources and mitigate risks associated with reliance on oil as the primary revenue source,” Mr. Al-Saqri mentioned.

Oman has been weighing the private revenue tax for a number of years, and its introduction follows different fiscal reforms. In 2020, it rolled out a programme to chop down public debt and enhance financial growth. The transfer, Mr. Al-Saqri mentioned, is a part of Oman’s broader Vision 2040 challenge, which hopes to show the nation right into a technology-based economic system.