Oman Tax Update

Analysis

Slim Gargouri provides an update on tax developments in Oman, examining recent calls for a foreign remittance tax to be introduced to help ease the Sultanate's budgetary burdens.

Background

In late November 2013, the economic and financial committee of Oman's Shoura Council recommended a tax on foreign remittances by foreign workers be introduced.

The proposed tax rate would be 2% and would cover around 1.5 million migrant workers.

Further information

Ali bin Abdullah al-Badi, the Committee's deputy head, said the measure would not have negative repercussions on the national economy and would provide an additional 62m Riyals to the Treasury.

The potential move comes as the GCC countries are looking more and more to decrease their reliance on foreign labor, particularly the United Arab Emirates and Saudi Arabia.