Thursday 05 / February / 2026
Muscat: 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.
