Oman’s Tax Revenues Exceed RO 1.3 Billion in 2025

Tax Revenues Surpass RO 1.3 Billion

Muscat: — The Tax Authority confirmed that it achieved its targeted estimates for current revenues of the State’s administrative apparatus units within the General Budget for 2025, amounting to approximately RO 1.373 billion, during its first media meeting held today in Muscat.

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

He noted that the Sultanate of Oman’s elevation in 2025 to the level of “highly compliant” in assessments related to transparency and the exchange of tax information reflects its firm commitment to international tax standards.

In his address, His Excellency explained that the number of tax returns submitted during 2025 reached 353,000, marking a 37 percent increase compared to 2024. This growth reflects improved voluntary compliance, the effectiveness of awareness campaigns, and the development of tax systems.

Responding to journalists’ questions, His Excellency stated that the government will implement a value-added tax refund service for tourists following the conclusion of agreements with specialized service providers regarding costs and applicable percentages.

For his part, Saeed bin Ahmed Al Shanfari, Director General of Tax Policies at the Tax Authority, reviewed the tax system in the Sultanate of Oman and the Authority’s strategy, highlighting its alignment with the objectives of Oman Vision 2040. He also outlined ongoing efforts to enhance institutional performance and improve services provided to taxpayers.

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

Meanwhile, Mahmoud bin Hamad Al-Ruba’ani, Director General of Tax Operations and Services, stated that during 2025, the number of income tax registrants increased by 88 percent, value-added tax registrants by 120 percent, and selective tax registrants by 222 percent, compared to 2021.

He added that tax revenues in 2025 amounted to RO 658 million from income tax, RO 631 million from value-added tax, and RO 84 million from excise tax.

Al-Ruba’ani further noted 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 administration. He also stated that the Sultanate of Oman has concluded 39 valid double taxation avoidance agreements with other countries by the end of 2025.

The meeting discussed several developments in local and international tax policies, including legislative reforms and measures to combat tax evasion, and their role in promoting tax justice, safeguarding public finances, and ensuring the sustainability of state revenues in support of economic and development goals.