Latest news with #PersonalIncomeTax
Business Wire
14-07-2025
- Business
- Business Wire
KBRA Assigns AAA Rating, Stable Outlook to New York State Thruway Authority State Personal Income Tax Revenue Bonds Series 2025A (Tax-Exempt) and State Personal Income Tax Revenue Green Bonds Series 2025B (Climate Bond Certified) (Tax-Exempt)
NEW YORK--(BUSINESS WIRE)--KBRA assigns a long-term rating of AAA with a Stable Outlook to the New York State Thruway Authority State Personal Income Tax Revenue Bonds Series 2025A (Tax-Exempt) and State Personal Income Tax Revenue Green Bonds Series 2025B (Climate Bond Certified) (Tax-Exempt). Concurrently, KBRA affirms the AAA rating and Stable Outlook on outstanding New York State Personal Income Tax Revenue Bonds issued by the Dormitory Authority of the State of New York. Key Credit Considerations The rating was assigned because of the following key credit considerations: Credit Positives Provisions of the PIT Enabling Act and the importance of PIT revenues to State operations mitigate the risk of legislative non-appropriation of financing agreement payments or a failure to pay such payments when due after amounts have been appropriated and set aside in the RBTF. RBTF Receipts provide ample historical and projected coverage of maximum annual debt service. A strong 2.0x MADS additional bonds test, as well as the importance of residual PIT revenues to fund State operations, provide strong offsets against the possibility of overleveraging of the PIT credit. Credit Challenges PIT receipts, particularly the non-withholding component, are inherently volatile and closely correlated to the income of wealthy residents and the performance of the financial sector. The share of PIT receipts related to net capital gains is significant. PIT receipts are disproportionately generated by the State's highest-earning taxpayers. The potential exists for continued outmigration of this component of the PIT revenue base. Financing agreement payments are subject to annual appropriation and executory only to the extent of amounts available in the RBTF. The potential for a diversion in the flow of RBTF Receipts in the event of a budgetary delay or a severe fiscal distress, while not non-existent, is extremely remote, in KBRA's view. Rating Sensitivities For Upgrade N/A For Downgrade A trend of declining debt service coverage that approaches the 2.0x ABT level. A failure by the State Legislature to annually appropriate amounts required to make financing agreement payments. Actions by the State to amend, repeal or alter statutes relating to the Personal Income Tax (Articles 22, 24 and 24-A of the Tax Law), or the State Personal Income Tax Revenue Bond Financing Program that negatively impact revenues available for financing agreement payments. To access ratings and relevant documents, click here. Methodologies Public Finance: U.S. Special Tax Revenue Bond Rating Methodology Public Finance: U.S. State Annual Appropriation Obligation Rating Methodology ESG Global Rating Methodology Disclosures A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1010359
Zawya
24-06-2025
- Business
- Zawya
Income Tax key step for revenue diversification: Oman's Economy Minister
Muscat – The Ministry of Economy affirmed that the implementation of the Personal Income Tax (PIT), set to take effect at the beginning of 2028, represents a crucial step toward enhancing financial stability and completing the fiscal sustainability framework. This measure aims to ensure sustainable financing for development across various sectors. H E Dr Said Mohammed al Saqri, Minister of Economy, stated: 'The tax serves as a new revenue stream to diversify public income sources and mitigate risks associated with reliance on oil as the primary revenue source. It will help maintain current levels of social and service spending while preserving Oman's achievements in financial and economic stability under 'Oman Vision 2040' and its first executive phase, the Tenth Five-Year Plan (2021-25).' He explained that the PIT is a fiscal tool adopted by most countries worldwide as a key revenue source to fund state-provided services. Over 190 countries impose this tax, and in many, income taxes constitute the largest component of total tax revenues at federal and local levels, financing public goods and services. He noted that implementing the tax in Oman will yield significant economic benefits, supporting income diversification strategies and long-term fiscal stability as a pillar of economic growth. It, he added, will also sustain government revenues, strengthen the state's financial position, maintain credit ratings, and boost spending power for beneficiaries – directly stimulating aggregate demand and economic growth. He highlighted that oil and gas revenues account for 68% to 85% of Oman's total public income, depending on global energy prices. While oil prices have stabilised at favourable levels in recent years, they remain volatile. Oman has effectively managed additional oil revenues by reducing public debt to safe GDP ratios, increasing investment and social spending, and subsidizing essential goods and services, he further noted. He affirmed that government policies and initiatives have successfully shifted Oman's fiscal and economic trajectory toward sustainability and stability. Public debt has sharply declined, credit ratings have consistently improved to investment-grade levels, and Oman's standing in global competitiveness indices has risen. The Tenth Five-Year Plan sustained GDP growth near target rates, while economic diversification policies attracted quality investments and drove non-oil sector growth beyond expectations, the minister said. He added: 'As the Tenth Plan nears completion, Oman has advanced significantly in economic diversification and fiscal sustainability. The PIT will further prioritise financial stability by diversifying revenue sources – a strategic necessity to ensure equitable wealth distribution, enhance public services, strengthen social protection systems, and mitigate risks from global energy market fluctuations and other economic variables.' He emphasised that accelerating 'Oman Vision 2040' and its economic diversification strategy – transitioning to a knowledge- and technology-driven economy – requires sustainable funding for long-term planning. The Vision targets strategic investments in education, human capital, advanced infrastructure, innovation, and diversified sectors, alongside essential services and social protection. He pointed out that the 2025 budget allocates over RO5bn (39% to education, 24% to health, 28% to social protection) to these sectors, with the Social Protection Fund benefiting over 2mn people monthly as a key mechanism for household financial stability. As for the potential economic impacts, He noted that the tax study assessed effects on GDP and 18 economic sectors, concluding minimal impact (under 1%) due to high exemption and low tax rates. Foreign investment is expected to remain unaffected, as the tax applies to individuals – not corporate entities – and Oman's rates remain competitive globally, the minister concluded. © Apex Press and Publishing Provided by SyndiGate Media Inc. (
Muscat Daily
24-06-2025
- Business
- Muscat Daily
Income Tax key step for revenue diversification: Economy Minister
Muscat – The Ministry of Economy affirmed that the implementation of the Personal Income Tax (PIT), set to take effect at the beginning of 2028, represents a crucial step toward enhancing financial stability and completing the fiscal sustainability framework. This measure aims to ensure sustainable financing for development across various sectors. H E Dr Said Mohammed al Saqri H E Dr Said Mohammed al Saqri, Minister of Economy, stated: 'The tax serves as a new revenue stream to diversify public income sources and mitigate risks associated with reliance on oil as the primary revenue source. It will help maintain current levels of social and service spending while preserving Oman's achievements in financial and economic stability under 'Oman Vision 2040' and its first executive phase, the Tenth Five-Year Plan (2021-25).' He explained that the PIT is a fiscal tool adopted by most countries worldwide as a key revenue source to fund state-provided services. Over 190 countries impose this tax, and in many, income taxes constitute the largest component of total tax revenues at federal and local levels, financing public goods and services. He noted that implementing the tax in Oman will yield significant economic benefits, supporting income diversification strategies and long-term fiscal stability as a pillar of economic growth. It, he added, will also sustain government revenues, strengthen the state's financial position, maintain credit ratings, and boost spending power for beneficiaries – directly stimulating aggregate demand and economic growth. He highlighted that oil and gas revenues account for 68% to 85% of Oman's total public income, depending on global energy prices. While oil prices have stabilised at favourable levels in recent years, they remain volatile. Oman has effectively managed additional oil revenues by reducing public debt to safe GDP ratios, increasing investment and social spending, and subsidizing essential goods and services, he further noted. He affirmed that government policies and initiatives have successfully shifted Oman's fiscal and economic trajectory toward sustainability and stability. Public debt has sharply declined, credit ratings have consistently improved to investment-grade levels, and Oman's standing in global competitiveness indices has risen. The Tenth Five-Year Plan sustained GDP growth near target rates, while economic diversification policies attracted quality investments and drove non-oil sector growth beyond expectations, the minister said. He added: 'As the Tenth Plan nears completion, Oman has advanced significantly in economic diversification and fiscal sustainability. The PIT will further prioritise financial stability by diversifying revenue sources – a strategic necessity to ensure equitable wealth distribution, enhance public services, strengthen social protection systems, and mitigate risks from global energy market fluctuations and other economic variables.' He emphasised that accelerating 'Oman Vision 2040' and its economic diversification strategy – transitioning to a knowledge- and technology-driven economy – requires sustainable funding for long-term planning. The Vision targets strategic investments in education, human capital, advanced infrastructure, innovation, and diversified sectors, alongside essential services and social protection. He pointed out that the 2025 budget allocates over RO5bn (39% to education, 24% to health, 28% to social protection) to these sectors, with the Social Protection Fund benefiting over 2mn people monthly as a key mechanism for household financial stability. As for the potential economic impacts, He noted that the tax study assessed effects on GDP and 18 economic sectors, concluding minimal impact (under 1%) due to high exemption and low tax rates. Foreign investment is expected to remain unaffected, as the tax applies to individuals – not corporate entities – and Oman's rates remain competitive globally, the minister concluded.
Arabian Business
23-06-2025
- Business
- Arabian Business
Personal income tax comes into effect in Oman from January 1, 2028
Oman's first Personal Income Tax Law, which will affect only 1 per cent of its high-earning population, will come into effect from January 1, 2028. The new Personal Income Tax Law contributes to the objectives of Oman Vision 2040 by diversifying income sources and reducing reliance on oil revenues. The targets set are 15 per cent of GDP by 2030 and 18 per cent by 2040. The law, issued by Royal Decree No 56/2025 (consisting of 76 articles across 16 chapters), will apply a 5 per cent tax rate on individuals earning over OMR42,000 (USD109,230/AED401,160) annually. It also includes deductions and exemptions for social considerations in Oman, such as education, healthcare, inheritance, zakat, donations, primary housing, and other factors. The Authority added that the new tax system follows an in-depth study assessing its economic and social impact, based on income data from various government entities. It led to the establishment of a carefully considered exemption threshold, which ensures that approximately 99 per cent of Oman's population will not be subject to this tax. Karima Mubarak Al Saadi, Director of the Personal Income Tax Project, confirmed that all necessary preparations and requirements for implementing the tax have been completed. Speaking to Oman News Agency (ONA), Al Saadi said that an electronic system has been developed by the Tax Authority to promote voluntary compliance and has been linked with the departments concerned to ensure accurate income calculation and verification of tax declarations. The Tax Authority has also strengthened its workforce through specialised training programs in line with the tax implementation requirements. The Authority said the new tax aims to promote wealth redistribution among societal segments, enhancing social justice, while supporting the state budget and specifically financing part of the social protection system.
Observer
23-06-2025
- Business
- Observer
PIT to ensure sustainable financing for development
MUSCAT: The Ministry of Economy affirmed that the implementation of the Personal Income Tax (PIT), set to take effect at the beginning of 2028, represents a crucial step towards enhancing financial stability and completing the fiscal sustainability framework. This measure aims to ensure sustainable financing for development across various sectors. Dr Said bin Mohammed al Saqri, Minister of Economy, stated: 'The tax serves as a new revenue stream to diversify public income sources and mitigate risks associated with reliance on oil as the primary revenue source. It will help maintain current levels of social and service spending while preserving Oman's achievements in financial and economic stability under Oman Vision 2040 and its first executive phase, the Tenth Five-Year Plan (2021-2025)." He explained that the (PIT) is a fiscal tool adopted by most countries worldwide as a key revenue source to fund state-provided services. Over 190 countries impose this tax, and in many, income taxes constitute the largest component of total tax revenues at federal and local levels, financing public goods and services. He noted that implementing the tax in Oman will yield significant economic benefits, supporting income diversification strategies and long-term fiscal stability as a pillar of economic growth. It, he added, will also sustain government revenues, strengthen the state's financial position, maintain credit ratings and boost spending power for beneficiaries — directly stimulating aggregate demand and economic growth. He highlighted that oil and gas revenues account for 68 per cent to 85 per cent of Oman's total public income, depending on global energy prices. While oil prices have stabilised at favourable levels in recent years, they remain volatile. Oman has effectively managed additional oil revenues by reducing public debt to safe GDP ratios, increasing investment and social spending, and subsidising essential goods and services, he further noted. Dr Said bin Mohammed al Saqri, Minister of Economy He affirmed that government policies and initiatives have successfully shifted Oman's fiscal and economic trajectory towards sustainability and stability. Public debt has sharply declined, credit ratings have consistently improved to investment-grade levels, and Oman's standing in global competitiveness indices has risen. The Tenth Five-Year Plan sustained GDP growth near target rates, while economic diversification policies attracted quality investments and drove non-oil sector growth beyond expectations, the minister said. He added: 'As the Tenth Plan nears completion, Oman has advanced significantly in economic diversification and fiscal sustainability. The (PIT) will further prioritise financial stability by diversifying revenue sources — a strategic necessity to ensure equitable wealth distribution, enhance public services, strengthen social protection systems, and mitigate risks from global energy market fluctuations and other economic variables.' He emphasised that accelerating Oman Vision 2040 and its economic diversification strategy — transitioning to a knowledge- and technology-driven economy — requires sustainable funding for long-term planning. The vision targets strategic investments in education, human capital, advanced infrastructure, innovation and diversified sectors, alongside essential services and social protection. He pointed out that the 2025 budget allocates over RO 5 billion (39 per cent to education, 24 per cent to health, 28 per cent to social protection) to these sectors, with the Social Protection Fund benefiting over 2 million people monthly as a key mechanism for household financial stability. As for the potential economic impacts, the minister noted that the tax study assessed effects on GDP and 18 economic sectors, concluding minimal impact (under 1 per cent) due to high exemption and low tax rates. Foreign investment is expected to remain unaffected, as the tax applies to individuals — not corporate entities — and Oman's rates remain competitive globally, the minister concluded. - ONA
