Oman’s Plan to Introduce Income Tax Affects Indian Expatriates
Oman is poised to become the first of the GCC countries to implement income tax, potentially impacting over 600,000 Indian residents. Reports indicate that the Omani government is considering levying 5 to 9 per cent taxes on individuals earning above Rs 84 lakh.
The proposed taxation system is expected to affect a significant number of Indians residing and working in Oman, many of whom also remit substantial amounts back to India, totaling around Rs 27,000 crore. This development coincides with discussions about potentially ending the zero-income tax system in Kuwait, while countries such as Saudi Arabia and the United Arab Emirates continue to uphold tax-free systems.
The shift towards taxation in these Gulf countries comes as they seek alternative revenue sources amid declining oil reserves and a global move towards greener energy. Saudi Arabia, for instance, currently imposes a 15 per cent Value Added Tax (VAT) on most products. These developments could have repercussions for the large Indian expatriate community in the region, which forms a significant part of the workforce in these nations.