A statement issued by the Sultanate’s Tax Authority said: "With reference to what is being circulated regarding the application of income tax to individuals starting from 2022, the Authority confirms that no official statement or decision has been made in this regard. The issue is still under study according to what is announced in the medium-term fiscal balance plan, and therefore we call on everyone to take information from official sources only.”

Over the past few months, there were speculations that Oman may introduce an income tax on high earners in 2022. None of the GCC states currently collect income tax from individuals.

Oman does not levy any taxes on personal income, including income from capital gains, wealth, death or property. Non-residents individuals who do not fulfil tax residency conditions and derive certain specified income are subject to withholding tax (‘WHT’) at the rate of 10 per cent of gross income.

It may be noted that income tax in Oman is levied at 15 per cent on establishments, sole proprietorships, Omani companies and permanent establishment in Oman of foreign enterprises. Small taxpayers are entitled to a lower rate of tax at 3 per cent/Nil subject to conditions. Companies engaged in petroleum operations are subject to tax at 55 per cent, subject to any special tax considerations provided in the concession agreement.