Oman May Tax Remittances

By ExpatBriefing.com Editorial 27 November, 2013

The economic and financial committee of Oman's Shura Council has advised the government to tax the remittances sent by foreign workers to their home countries.

The tax, to be levied at two percent, is intended as a measure to ease growing pressure on the state budget.

The deputy head of the committee, Ali bin Abdullah al-Badi, insisted that the tax would not negatively impact Oman's economy or its citizens.

The proposed tax would affect about 1.5m expatriate workers, most of whom come from south and southeast Asia. It would also generate roughly OMR62m (USD161m) in annual tax income, based on the OMR3.1bn of outbound worker remittances recorded in 2012.

The tax would enable Oman to diversify its revenues beyond oil and would encourage more hiring of Omani citizens by making foreign workers more expensive.

In September it was revealed that the United Arab Emirates is considering a tax on remittances.

Tags: United Arab Emirates | Tax | Budget | Oman | Expats | Working Abroad | Work | Working Abroad | Working Abroad |

 





News Archive