Taxes

Gulf Cooperation Council (GCC) member states were traditionally regarded as tax-free economies. However, this changed as governments sought to address budget deficits caused by extensive subsidies and declining crude oil prices.

In June 2016, all six GCC countries signed the Unified Agreement for Value Added Tax (VAT), which established a common framework for implementing a standard 5% VAT across the region.

Oman introduced VAT on April 16, 2021. However, crude oil and its derivatives are subject to a zero-rated VAT, meaning they are taxed at 0% but still fall under the VAT system.

A 5% import duty is applied to crude oil, natural gas, and other petroleum products, while no export taxes are levied on oil, gas, or related petroleum exports.