Oman to Levy 3% Expat Tax
April 4, 2016 Taxation in Oman
Over the weekend Tawfiq Al Lawati a member of the Consultative Assembly of Oman announced that a proposal has been submitted to replace the current fees for expatriates’ visa renewals with a 3 percent tax on incomes.
Currently non-residents working in Oman are required to pay a visa renewal fee of OMR 200 every two years.
Under the rules of the proposal, the fee would be replaced with a tax of 3 percent on the income of the individual.
The new system is expected to be reduce the financial burden faced by low-level foreign workers such labourers, while raising the burden faced by high-earning workers.
The tax is also expected to raise the level of tax revenues collected by the government, a welcome prospect as the country faces declining profits with the slide of global oil prices.
This is not the first step that the government of Oman is taking to improve its finances, having approved spending cuts and the removal of wide-ranging subsidies at the end of last year.
Photo by: Ryan Lackey