Muscat imposes tax on photovoltaic glass

Muscat is the capital of Oman and the main political, economic and administrative centre. It is situated along the coast of the Gulf of Oman. Is Oman a tax-free country? For personal earnings, mostly yes. Oman is well-known for not having a personal income tax on salaries.

It imposes a 5 per cent tax on annual income exceeding 42,000 Omani rials ($109,236), Oman News Agency said, citing the country's tax authority. The law, which will come into effect at the beginning of 2028, will levy tax on income derived from “specific income types as defined by the law”, the news agency said.

There is currently no personal income tax in Oman. Salaries, dividends, rental income, investment gains — all remain tax-free for expats and residents alike. That may soon change. A draft income tax law aimed at high earners has passed Oman's Parliament and is awaiting final review.

Businesses with annual taxable supplies exceeding OMR 38,500 must register for VAT, while those exceeding OMR 19,250 can register voluntarily. Oman charges the usual GCC Customs Duty rate of 5% on most goods that are brought in from outside the Gulf Cooperation Council. When it comes to property, Oman stands out as it levies no annual property tax.

When a $1 tariff is imposed on manufacturers, the final prices of installed photovoltaic (PV) systems increase by $1.35 (Houde & Wang 2022). Similarly, analysis of the 2018 U.S. tariff on washing machines indicate the cost of tariffs is passed to consumers at a rate above 100% (Flaaen et al. 2020).

Silvia Razgova / The National Oman's move to introduce personal income tax from 2028 is a significant milestone in the sultanate's push to achieve its economic diversification goals, although the tax ratio remains low to reduce burden on the population, analysts have said. The Personal Income Tax Law was introduced on Sunday through royal decree.