Category Taxation in Oman
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 ta...Read More
December 31, 2015 Taxation in Oman
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 ...Read More
November 25, 2014 Taxation in Oman
MUSCAT – Oman may soon slash government spending and raise tax rates in order to bolster government coffers in the face of dropping oil prices.
On November 24th the Oman News Agency issued a report claiming that the government-appointed Shoura Council has brought forward a proposal to enacting several tax hikes in order to raise more funds to counteract the negative fiscal effects of dropping prices for oil around the world.
It is currently estimated that if the price of the Brent oil exported by Oman does not rise above the forecast price of USD 80 per barrel over the course of next year, the government will face a budget deficit of OMR 3.05 billion.Read More
The Council suggested that the government implement a tax of 2 percent on international remittance services used by expats in the country, ...
December 9, 2013 Taxation in Oman
Oman does not raise the tax revenues necessary to cover the costs of its social infrastructure and developments projects, as the collection of income taxes currently brings in OMR 350 million per year, while customs duties amount to OMR 180 million, which, together, are worth only 1.5 percent of the nation’s GDP, according to the Managing Partner of Crowe Harwoth Oman Davis Kallukaran, in a speech delivered at the opening of a professional workshop hosted in Muscat late last week.
In comparison he pointed out that the UK and the USA have tax-to-GDP ratios of 34...Read More