Oman’s
Tax Revenues Exceed RO 1.3 Billion

Muscat,
5 Feb 2026 (ONA) — The Tax Authority, during its first media briefing held
today in Muscat, confirmed that it has achieved its targets within the current
revenue estimates for the Administrative Units of the State in the General
State Budget for 2025, estimated at approximately RO 1.373 billion.

Nasser
Khamis Al Jashmi, Chairman of the Tax Authority, stated that taxes are a
fundamental pillar of financial sustainability and a fair means of providing
the necessary resources to fund public services, support comprehensive
development, and enhance the state’s ability to address global economic
changes. He pointed out that Oman’s upgrade in 2025 to the level of
“Largely Compliant” in the assessment of tax transparency and
information exchange reflects its commitment to relevant international
standards in tax matters.

In
his speech during the briefing, he added that the number of tax returns
submitted in 2025 reached 353,000, achieving a growth of 37 percent compared to
2024, reflecting improved voluntary compliance, the effectiveness of awareness
efforts, and system development.

In
response to journalists’ inquiries, the Chairman of the Tax Authority clarified
that the government will implement the Value Added Tax (VAT) refund service for
tourists after reaching an agreement with the companies providing this service
regarding cost and percentage.

For
his part, Said Ahmed Al Shanfari, Director General of Tax Policies at the Tax
Authority, presented an overview of the tax system in the Sultanate of Oman,
the Tax Authority’s strategy, and its alignment with the objectives of
“Oman Vision 2040.” He highlighted the efforts made to enhance
performance levels and improve the services provided by the Authority to
taxpayers.

The
Director General of Tax Policies noted that the Authority is the highest
government contributor to state revenues after oil and gas.

Meanwhile,
Mahmoud Hamad Al Rubaie, Director General of Tax Operations and Services at the
Tax Authority, confirmed that the number of Income Tax registrants increased by
88 percent, VAT registrants by 120 percent, and Excise Tax registrants by 222
percent in 2025 compared to 2021.

He
explained that the tax revenues in 2025 consisted of RO 658 million from Income
Tax, RO 631 million from VAT Tax, and RO 84 million Excise Tax.

The
Director General of Tax Operations and Services stated that the Authority seeks
to implement modern systems, including electronic invoicing, a distinctive mark
system, a tax risk management system, and the use of artificial intelligence
technologies in tax work. He clarified that the total number of double taxation
avoidance agreements concluded by the Sultanate of Oman with other countries by
the end of 2025 reached about 39 effective agreements.

The
event discussed several updates in tax policies at the domestic and
international levels, including legislative reforms and anti-tax evasion
practices and their role in enhancing tax justice, protecting the state’s
financial resources, and ensuring the sustainability of public revenues, in
support of achieving economic and developmental goals.

—
Ends/AH