Thursday, February 05, 2026

Oman News

Oman income tax revenue climbs to RO 658 million in 2025, boosting fiscal targets

The Tax Authority has announced a landmark fiscal performance for 2025, with income tax revenues reaching RO 658 million.

TAS News Service

info@thearabianstories.com

Thursday, February 5, 2026

MUSCAT : Mahmoud bin Hamad Al Ruba’ani, Director General of Tax Operations and Services at the Tax Authority, confirmed that the number of income tax registrants rose by 88 percent compared to 2021. Registrants for value-added tax (VAT) increased by 120 percent, while selective tax registrants surged by 222 percent over the same period.

Tax revenues for 2025 reached substantial levels, with income tax contributing RO 658 million, VAT revenues totalling RO 631 million, and excise tax generating RO 84 million. Overall, the Tax Authority reported meeting its revenue targets aligned with the state’s general budget, which estimated approximately 1.373 billion Omani rials for 2025.



His Excellency Nasser bin Khamis Al Jashmi, Chairman of the Tax Authority, emphasised the vital role of taxes as a foundation for financial sustainability and a fair mechanism to fund public services and comprehensive development. He highlighted Oman’s elevation to a “highly compliant” status in transparency and exchange of tax information in 2025, underlining the country’s adherence to international tax standards.

During the Authority’s first media briefing of the year in Muscat, His Excellency Al Jashmi revealed that 353,000 tax returns were submitted in 2025, marking a 37 percent increase over 2024. This growth signifies improved voluntary compliance, effective awareness campaigns, and enhanced digital systems.
Mahmoud Al Ruba’ani also outlined ongoing efforts to modernize tax administration, including the implementation of electronic invoicing, a distinctive mark system, tax risk management, and the integration of artificial intelligence technologies.

Addressing future initiatives, the Chairman of the Tax Authority announced plans to introduce a VAT refund service for tourists, following agreements with service providers on refund costs and rates.
The Tax Authority further disclosed that Oman has concluded around 39 valid double taxation avoidance agreements with other countries up to the end of 2025, reinforcing its commitment to fostering a favourable business environment.

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