Tax Authority Reviews 2025 Performance, Announces VAT Refund Plan for Tourists

Tax Authority Achieves RO 1.373 Billion in 2025 Revenues

Muscat: The Tax Authority confirmed that it has achieved its targets within the current revenue estimates allocated to the Administrative Units of the State in the General State Budget for 2025, amounting to approximately RO 1.373 billion.

This came during the Authority’s first media briefing, held today in Muscat.

Nasser Khamis Al Jashmi, Chairman of the Tax Authority, stated that taxes represent a fundamental pillar of financial sustainability and a fair means of securing the resources required to finance public services, support comprehensive development, and enhance the state’s ability to respond to global economic changes.

He pointed out that the Sultanate of Oman’s upgrade in 2025 to the level of “Largely Compliant” in the assessment of tax transparency and information exchange reflects its commitment to international standards governing tax affairs.

In his address, Al Jashmi noted that the number of tax returns submitted in 2025 reached 353,000, recording a growth of 37 percent compared to 2024, which reflects improved voluntary compliance, the effectiveness of awareness initiatives, and ongoing system development.

In response to questions from journalists, the Chairman clarified that the government will implement a Value Added Tax (VAT) refund service for tourists once an agreement is reached with service providers regarding costs and applicable percentages.

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 and the Authority’s strategy, highlighting its alignment with the objectives of Oman Vision 2040. He outlined efforts undertaken to enhance performance levels and improve the quality of services provided to taxpayers.

Al Shanfari noted that the Tax Authority is the largest contributor to state revenues after oil and gas.

Meanwhile, Mahmoud Hamad Al Rubaie, Director General of Tax Operations and Services, stated 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 tax revenues for 2025 comprised RO 658 million from Income Tax, RO 631 million from Value Added Tax, and RO 84 million from Excise Tax.

Al Rubaie added that the Authority is working to implement advanced systems, including electronic invoicing, a distinctive mark system, a tax risk management system, and the use of artificial intelligence technologies in tax operations. He further noted that the total number of double taxation avoidance agreements concluded by the Sultanate of Oman by the end of 2025 reached 39 effective agreements.

The briefing also reviewed several domestic and international tax policy developments, including legislative reforms and anti-tax evasion measures, and their role in promoting tax justice, safeguarding public financial resources, and ensuring the sustainability of state revenues in support of economic and developmental objectives.