Latest news with #taxAuthority
Arab News
23-06-2025
- Business
- Arab News
Oman to be first Gulf country to impose personal income tax
RIYADH: Oman will become the first country in the Gulf to impose a personal income tax, as the oil producer works to diversify its revenue stream. The sultanate will impose a 5-percent levy on taxable income for individuals earning over 42,000 Omani rials ($109,091) per year starting from 2028, according to a royal decree. The Gulf country added that the tax would apply to about 1 percent of the population. The move comes after Oman launched a medium-term fiscal program in 2020 to reduce public debt, diversify revenue sources, and spur economic growth, which has improved state finances. 'The law also includes deductions and exemptions that take into account the social situation in the Sultanate of Oman, such as education, health care, inheritance, zakat, donations, primary housing,' the country's tax authority said in a statement. The law was implemented following an 'in-depth study to assess the economic and social impact,' and income data collected from various government entities was used to set the exemption threshold. 'The results showed that approximately 99 percent of the population in the Sultanate of Oman is not subject to this tax,' the authority said. The statement added that the electronic system has been designed to enhance voluntary compliance and is linked with relevant institutions to ensure accurate calculation of individuals' income and to verify the accuracy of submitted tax returns. The tax will contribute to achieving social solidarity and will not include wealth, such as land ownership. It will be imposed on the annual income specified by law and includes 'all cash amounts and in-kind benefits received by the individual,' the authority said. The move aims to complete the tax system in line with the economic and social situation in the sultanate, and the tax revenue will go toward supporting the social protection program, 'with sustained cooperation,' it added. The move will support the objectives of Oman Vision 2040, which targets reducing dependence on oil by achieving 15 percent of gross domestic product from non-oil sources by 2030 and 18 percent by 2040. 'It will also contribute to achieving social justice by redistributing the wealth among the segments of society, provide support to the general budget of the country, and be directed in particular to finance part of the costs of the social protection system,' the authority said.
Reuters
23-06-2025
- Business
- Reuters
Oman moves to become first Gulf state to impose personal income tax
DUBAI, June 23 (Reuters) - Oman issued a royal decree to become the first country in the Gulf to impose a personal income tax, its tax authority said on Sunday, as the small oil producer works to diversify its revenue stream. Oman, among the smaller Gulf economies, launched a medium-term fiscal programme in 2020 to reduce public debt, diversify revenue sources, and spur economic growth, which has improved public finances. Oman, which still remains largely reliant on oil revenue, will impose a 5% tax on taxable income for individuals earning over 42,000 Omani rials ($109,091) per year starting from 2028, according to the decree. "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 country's tax authority said in a statement. The Gulf country added that the tax would apply to about 1% of the population. ($1 = 0.3850 Omani rials)
Zawya
08-05-2025
- Business
- Zawya
Egypt's Tax Authority prepares comprehensive guide on exported services
Egypt - Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), has announced that a comprehensive guide on the tax treatment of exported services is currently under preparation. The guide aims to provide a unified, accurate, and widely accepted reference for businesses and tax professionals, addressing ongoing ambiguities in the tax system. Her remarks came during a virtual seminar hosted by Deloitte Egypt, which brought together representatives from companies, tax consultants, and experts to discuss recent tax facility initiatives introduced by the government to support the business environment and simplify procedures. Abdel Aal explained that earlier directives issued to clarify the taxation of exported services had inadvertently created confusion during implementation, leading to their cancellation—a move broadly welcomed by the professional community. She emphasized the importance of direct engagement with taxpayers as a core strategy to resolve challenges and ensure practical, transparent tax administration. She noted that the first phase of tax facilities has delivered measurable benefits, including improved voluntary compliance, higher tax revenue, and a significant number of taxpayers filing amended returns to benefit from the new provisions. These measures have also helped settle a large number of outstanding tax disputes and strengthened trust between the Tax Authority and the business community. VAT refunds, Abdel Aal said, remain a top priority for the Authority and receive direct oversight from the Minister of Finance. As part of the current reforms, the Tax Authority aims to increase the volume of VAT refund cases by three to four times, with recent changes already reducing average processing time to about 22 days. However, she acknowledged that challenges remain and called on taxpayers to submit accurate and complete documentation—now clearly outlined on the Authority's website—to further streamline the refund process. Abdel Aal reiterated that effective implementation is essential to successful tax policy. From the launch of the tax facility package, the Authority has focused on promoting tax fairness, ease of compliance, and constructive partnership with taxpayers across all provinces. She also highlighted efforts to support small enterprises with annual revenues of up to EGP 20m through a simplified tax system. This is part of a broader strategy to encourage businesses in the informal sector to integrate into the formal economy. The simplified framework aims to ease both tax and procedural burdens, but participation requires registration in the electronic invoicing and receipt systems. To support this transition, the Ministry of Finance and the Tax Authority are providing technical assistance and training to help small businesses adopt the system. This includes facilitating electronic signature issuance, offering point-of-sale (POS) devices, and covering associated costs—all aimed at accelerating the digital transformation of commercial operations and enhancing tax compliance. Abdel Aal also underscored the important role of certified accountants in supporting the tax system. She announced the activation of a pre-ruling system that provides binding guidance on the tax implications of future transactions, helping investors make informed decisions and comply with tax laws with greater certainty. She further noted that the Authority is addressing issues related to the registration of virtual permanent establishments. Coordination between the General Directorate of International Agreements and the Corporate Tax Department is underway to streamline the registration process. New instructions on registration and profit allocation for virtual permanent establishments—aligned with international standards—are also under consideration.
