&w=3840&q=100)
Oman to become first Gulf country to impose income tax
Omani men pass in front of Canadian cafe and bake shop Tim Hortons in City Center Mall in Muscat, Oman, February 11, 2019. Picture taken February 11, 2019. (Reuters/Hamad I Mohammed)
Oman has announced the imposition of personal income tax, becoming the first Gulf country to do so.
The move to collect income tax is part of Oman's attempt to diversify revenue sources and reduce public debt.
In the petroleum-rich Gulf region, countries do not impose a personal income tax. Firstly, governments earn plenty of revenue from oil and gas. Secondly, zero personal income tax attract high net worth individuals. Thirdly, these countries make up for revenue lost from foregoing income tax with corporate income taxes, value-added tax (VAT), customs duties and fees.
STORY CONTINUES BELOW THIS AD
The personal income tax collection will start in Oman in 2028.
What we know of Oman's income tax?
Oman will collect 5 per cent personal income tax on taxable income from people earning more than 42,000 Omani rials ($109,091) per year starting 2028, according to Reuters.
'The law also includes deductions and exemptions that take into account the social situation in the Sultanate of Oman, such as education, healthcare, inheritance, zakat, donations, primary housing,' the news agency quoted Omani tax authority as saying.
The tax authority said such a tax will apply to around 1 per cent of the Omani population.
Economy Minister Said bin Mohammed Al-Saqri was quoted as saying by Bloomberg that the measure will reduce reliance on oil revenues by diversifying public revenue while maintaining social spending.
Even as no other Gulf country has announced such a measure, experts have said that might change in coming years as expenditures of governments rise and revenue sources remain stagnant, leading to deficits. Saudi Arabia and Bahrain are set to have deficits this year. The International Monetary Fund (IMF) has said that more Gulf countries may introduce personal income tax in coming years, particularly as they prepare for a world in which fossil fuel loses
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
6 minutes ago
- Mint
Intel Slides After New CEO's Comeback Plan Worries Investors
(Bloomberg) -- Shares of Intel Corp. tumbled 8.5% on Friday after Chief Executive Officer Lip-Bu Tan sparked concerns that he was more focused on cost cutting than restoring the chipmaker's technological edge. As part of Intel's second-quarter report, Tan said the company will cancel some factory projects and take a more conservative approach to future spending. Tan called the investments begun under his predecessor, Pat Gelsinger, excessive and unwise. 'I do not subscribe to the belief that if you build it, they will come,' he said on a conference call with analysts. At the same time, Tan struggled to give a clear picture of how he'll make the company more competitive again. Gelsinger had embarked on an ambitious plan to turn Intel into a chip foundry, a business that makes products for outside clients. A key part of that was moving toward a more advanced production technique called 14A. But Tan signaled Thursday that Intel will only roll out that technology tentatively. The company will add large-scale capacity for 14A when Tan is convinced he has enough customers committed to using it, he said on the call. That didn't sit well with investors, who sent the shares down to $20.70 in New York on Friday, the stock's biggest single-day decline in more than three months. 'The idea you might step away from 14A if you can't get someone to invest in it is a problem,' said Wedbush Securities Inc. analyst Matt Bryson. The crux of the concern: If Intel stops introducing new manufacturing technology, it's bowing out of the race for leadership of the chip industry — and closing the book on what made it untouchable for decades. Intel's woes have previously spurred speculation that it might be acquired or broken up, though there's no clear path to a major deal. Possible suitors for Intel's factory division, such as Taiwan Semiconductor Manufacturing Co., have backed away from the idea. Tan also has said he aims to keep Intel's manufacturing and product-design businesses together, though he does plan to offload smaller divisions. Intel confirmed on Friday that it aims to spin off its networking group into a standalone business. The company said it has begun identifying strategic investors, without naming them. CRN previously reported on the plan. In its earnings report, Intel gave an upbeat third-quarter sales forecast while missing estimates for some profit measures. Margins will be tighter than Wall Street anticipated in the period, and Intel only expects a break-even quarter. Analysts had projected a 4-cent gain on that basis. In the second quarter, revenue amounted to $12.9 billion, little changed from a year earlier. Analysts had projected $11.9 billion. The company posted a loss of 10 cents a share, compared with an estimated profit of 1 cent. Intel's stock had been up 13% this year through Thursday's close. Though that gain was in line with most chip stocks in 2025, rivals Nvidia Corp. and Advanced Micro Devices Inc. have performed better — lifted by their artificial intelligence prospects. Tan's focus is getting Intel's financial house in order, a task that has included thousands of layoffs and the slashing of capital spending. The company said Thursday that already-paused factories in Germany and Poland won't go ahead, and progress at another project in Ohio will be slowed. Intel will reduce capital expenditures on new plants and equipment this year and plans to make further cuts to that budget next year. The company will spend about $18 billion this year and less in 2026, executives said. Tan, who took the CEO job in March, acknowledged that he still has work to do to make the company more competitive in its main markets: processors for personal computers and servers. He's also still crafting Intel's plan to crack the AI chip industry — an area where Nvidia dominates. Third-quarter sales will be $12.6 billion to $13.6 billion, Intel said. Analysts on average had projected a number at the low end of that range. The company has benefited from a resurgence in the PC industry, driven in part by manufacturers' efforts to build up inventory before tariffs hit. But the Silicon Valley pioneer has lost market share to rivals and is struggling to attract foundry clients. Intel's layoff plans — first announced during the previous quarterly report — will reduce staff by 15%, Intel said. And the company expects further cuts through attrition and the splitting off of business units, Chief Financial Officer Dave Zinsner said in an interview. The chipmaker aims to end the year with 75,000 employees, down more than 20% from the end of the June quarter. Bloomberg News reported in April that Intel was looking to cut its workforce by roughly that amount. Analysts have expressed concern that PC demand will decelerate after a strong first half. The threat of tariffs imposed by the US — and other nations in retaliation — may have prompted PC makers to rush to stock up ahead of prospective cost spikes, the company warned last quarter. Demand was better than expected last quarter because an economic slowdown didn't materialize, Zinsner said. But the company is aware that some demand might have stemmed from consumers and businesses trying to avoid tariffs. 'We felt like tariffs might be a headwind in the second quarter and would further unsettle the economy,' he said. 'None of that transpired.' Intel's client computing division had revenue of $7.9 billion last quarter, topping the average prediction of $7.3 billion. Data center sales were $3.9 billion, compared with a $3.7 billion estimate. The foundry division generated revenue of $4.4 billion, in line with projections. Intel had previously said it planned to cut operating expenses to about $17 billion this year and $16 billion in 2026. The Santa Clara, California-based company remains on track for the 2025 cuts, Intel said Thursday. Tan's predecessor, Gelsinger, had concentrated on expanding Intel's factory network, once its key competitive advantage. He laid out plans to spend tens of billions of dollars on making its plants the best in the industry again, a status that would force rivals to use it as an outsourced provider of manufacturing. 'We will take a fundamentally different approach to building our foundry business,' Tan said in a memo to staff Thursday. 'Over the past several years, the company invested too much, too soon – without adequate demand. In the process, our factory footprint became needlessly fragmented and underutilized. We must correct our course.' For now, the biggest user of its factories is Intel's internal design teams. Some of Intel's best offerings now contain components made by TSMC, adding more pressure to its margins. Adjusted gross margin — the percentage of sales remaining after excluding the cost of production — was about 30% in the second quarter and will be 36% in the current period. That's close to half of what it was when Intel's chips dominated the data center market. Nvidia has margins above 70%. Intel's Zinsner said the company isn't yet ready to unveil AI-related gear. The chipmaker is focusing on the development of products that will fit in unserved parts of the market. Ultimately, Intel needs to figure out how it can benefit from artificial intelligence, Emarketer analyst Jacob Bourne said in a note. 'A fundamental market truth isn't going away,' he said. 'Global demand for AI chips continues to soar, and Intel must find its footing in that value chain.' (Updates shares starting in first paragraph.) More stories like this are available on
Mint
2 hours ago
- Mint
Investors eye possible US-Europe trade deal as deadline looms
NEW YORK, July 26 (Reuters) - Investors are hopeful a potential trade deal between the U.S. and European Union could bring more certainty to markets ahead of next Friday's tariffs deadline. European Commission President Ursula von der Leyen was set to meet U.S. President Donald Trump on Sunday in Scotland after EU officials and diplomats said they expected to reach a framework deal this weekend. Trump on Friday said there was a 50-50 chance or perhaps less that the U.S. would reach a trade agreement with the EU. Trade tensions between the U.S. and Europe may have provided some investors with a rationale to be cautious, said Sameer Samana, head of global equities and real assets at the Wells Fargo Investment Institute. "It's one of our largest trading relationships... So if that last piece falls into place, then you've probably got at the margin more people that have to get back in the markets," Samana said. "It's been a source of uncertainty that will go away." A deal would likely include a 15% baseline tariff on all EU goods entering the U.S. and probably a 50% tariff on European steel and aluminum, the officials and diplomats said. Optimism over easing trade tensions broadly has helped push U.S. stocks to record highs. Trump's April 2 "Liberation Day" announcement of sweeping global tariffs sent stocks plunging in the immediate aftermath, due to spiking fears about a recession that have since faded. Still, investors have been bracing for increased volatility heading into August 1, which the U.S. has set as a deadline for raising levies on a broad swath of trading partners. The EU is facing U.S. tariffs on more than 70% of its exports - 50% on steel and aluminum, 25% on cars and car parts and a 10% levy on most other EU goods, which Trump has said he would hike to 30% on August 1. Hopes for a deal with Europe rose after Trump struck a trade agreement with Japan earlier in the week. "The deal with Japan and the likely one soon with the EU are especially important given both are major U.S. trading partners, together accounting for about a quarter of all goods imports," analysts at Capital Economics said in a note on Friday. In the agreement with Japan, the country's auto sector, which accounts for more than a quarter of its U.S. exports, will see existing tariffs cut to 15% from levies totaling 27.5% previously. An agreement that also lowers EU auto tariffs to 15% "would be no small deal" for the region as well, as about 10% of its shipments to the U.S. are in the same category, Capital Economics said. Investors over the weekend were also watching for developments on trade between the U.S. and China. Officials from the two countries plan to meet in Stockholm next week to discuss extending an August 12 deadline for negotiating a deal. (Reporting by Lewis Krauskopf; Editing by Alden Bentley and Edward Tobin)
Mint
2 hours ago
- Mint
TSX adds to weekly gains as technology shares climb
(Updates at market close) TSX ends up 0.5% at 27,494.35 Eclipses Wednesday's record closing high July 25 (Reuters) - Canada's main stock index rose to a record high on Friday, with technology shares leading gains as investors turned attention to key events next week, including a Bank of Canada policy decision. The S&P/TSX Composite Index ended up 122.09 points, or 0.5%, at 27,494.35, eclipsing Wednesday's record closing high. For the week, the index was up 0.7%. The move has been supported by trade optimism "as negotiations have progressed on the U.S. side and also corporate profits that are coming in pretty strong," said Angelo Kourkafas, senior global investment strategist at Edward Jones. Policy decisions are due from both the BoC and the Federal Reserve on Wednesday, while an August 1 deadline looms for Canada to reach a trade deal with the United States. "That summer calm may be tested," Kourkafas said. "We are seeing some signs of complacency, which raise the risk of near-term volatility, but fundamentals remain supportive." The Canadian central bank will hold its overnight interest rate steady at 2.75% for the third consecutive meeting, thanks to a recent rise in inflation and a fall in unemployment, according to a Reuters poll of economists that still found many expect at least two more cuts this year. The technology sector rose 1.8%, boosted by a 4.7% gain for the shares of Lightspeed Commerce, which is due to release earnings next Thursday. Shares of e-commerce company Shopify added 2.5%. Industrials were up 0.7% as railroad shares notched gains and heavily weighted financials ended 0.5% higher. Energy was a drag, dipping 0.5%, as the price of oil settled 1.3% lower at $65.16 a barrel. (Reporting by Fergal Smith in Toronto and Sanchayaita Roy in Bengaluru; Editing by Tasim Zahid and Rod Nickel)
