Oman to Raise Taxes

December 31, 2015 Taxation in Oman

MUSCAT – The government of Oman is looking to raise more non-oil revenues in order to reduce its reliance on variable oil revenues.

The government of Oman has given approval in principal to the proposal of raising corporate income tax and lowering spending in order to mitigate the negative financial impact of the international drop in oil prices.

In order to lessen the reliance on oil-based revenues, which are subject fluctuation and international demand, the government will raise the rate of corporate income tax in the foreseeable future in order to widen the tax base and establish a wider array of revenue streams.

Further, in order to lessen budgetary pressures, the government will also reduce spending on projects and staff salaries and bonuses.

Further, the subsidies on oil products will be revised, and the fees applicable on government services will be set higher.

Photo by: Ryan Lackey