Oman imposes income tax in 2022 

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هذه الصفحة متوفرة بهذه اللغة: العربية

1 November 2020

MUSCAT (WAF): Oman will introduce income tax to individuals with high incomes in 2022, data released by the Ministry of Finance shows.

According to the data, released as part of Oman’s mid-term fiscal plan 2020-2024 (Tawazon Program), Oman aims to increase government revenues to 12.1 billion Omani Rials ($31.46 billion), and total spending of 12.6 billion Omani Rials ($32.76 billion) by the end of the plan period, with the fiscal deficit in 2024 reaching about RO537 million ($1.4 billion).

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By the end of 2019, total government revenues amounted to 10.6 billion Omani Rials ($27.56 billion), while revenues until the end of July of this year amounted to RO5.2 billion ($13.52 billion), a decrease of 19% compared to the end of July 2019. At the same time, government spending at the end of last year amounted to RO13.2 billion ($34.32 billion). In July 2020, Oman’s spending amounted to RO6.7 billion ($17.42 billion), down 9.3% from the end of July 2019.

Based on the Ministry’s data, and in light of the economic changes during the year 2020, the Sultanate aims for actual revenues to reach RO8.6 billion ($22.36 billion), and public spending to reach RO12.66 billion ($32.9 billion) by the end of this year.

Tawazon expects that oil revenues to continue being the primary source of government revenues by 65% by 2024, a decrease by 11% from the share of oil and gas revenues in total revenues by the end of last year. Net oil revenues accounted for about 58% of the Sultanate’s revenues last year, and gas revenues accounted for 18% of the total income of the Sultanate in 2019.

The data received indicated that the Tawazon program includes reviewing government service fees, and reducing fees on real estate transactions from 5% to 3%, encouraging government units to invest in lands and their facilities, and exempting citizens of 100 countries from the requirement to obtain a visa to enter the Sultanate.

The plan also includes redirecting electricity subsidies to eligible groups, noting that the actual subsidy bill for the electricity sector by the end of 2019 amounted to RO600 million ($1.56 billion), up by 26% compared to 2018.