Following Oman’s historic decision to introduce individual income tax starting in 2028, economic experts suggest that other Gulf countries may also begin to consider similar measures as part of the comprehensive efforts to diversify government revenue.
As mentioned by the Khaleej Times on Sunday, Oman will implement five percent income tax to residents earning more than 42,000 Omani Rial (about DH400,000) annually from January 2028. This step makes Oman the first Gulf Cooperation Council (GCC) country to announce a concrete plan for personal income taxation, historically known for its tax-free environment.
Scott Livermore, Economic Advisor to the Institute of Chartered Accountants at Livormore, England and Wales (ICAEW), and Chief Economist and Managing Director in Oxford Economics Middle East said that while any other GCC countries do not have a formal plan to implement personal income tax currently, the idea is likely to be achieved.
“While other Gulf states currently have no plans to carry individual taxes, we guess that some forms of income tax – whether high -earning, migrants, or transmissions will be discovered as an income stream in the medium period,” said Livermore.
The introduction of income tax is aligned with widespread fiscal reforms in GCC, which aims to reduce dependence on oil revenue and ensure long -term economic stability. Many countries of the region, including Saudi Arabia and UAE, have already introduced VAT and corporate tax framework in recent years, reflecting a gradual change towards diverse revenue models.