Tax Authority sets out 2026 compliance push as 2025 revenue hits RO 1.373 billion

MUSCAT — Oman’s Tax Authority opened 2026 with a message aimed as much at confidence as compliance: filing should be simpler, information should be clearer, and engagement with the public should be continuous.
The Authority held its first media briefing of the year in Muscat on Thursday, positioning the event as a platform to strengthen cooperation with national media, exchange information and build public tax awareness.
In opening remarks, the Chairman of the Tax Authority, Nasser Khamis al Jashmi, described the media as a key partner in communicating tax issues to society. He said transparency and ongoing communication were essential to raising awareness and reinforcing voluntary compliance.
Al Jashmi framed taxation as a cornerstone of fiscal sustainability and a tool to support budget balance, pointing to its role in funding public services, backing social protection programmes and enabling infrastructure development.

Senior officials used the briefing to outline the Authority’s strategy and its alignment with Oman Vision 2040, highlighting ongoing efforts to improve performance and strengthen taxpayer services.
On results, the Director General of Operations and Tax Services said the Authority met its 2025 targets within the current revenue estimates for government administrative units, with collections estimated at around RO 1.373 billion.
He added that tax returns submitted during 2025 reached about 353,000, up 37% from 2024 — a rise he linked to stronger voluntary compliance and the impact of awareness initiatives.
He also sought to reassure smaller firms about filing requirements, saying companies have an adequate legal window to submit and upload returns through the Authority’s online portal, with a process designed to be straightforward. For most small businesses, he said, filing typically does not require an external audit by a licensed accountant.

The official stressed that any entity holding a commercial registration — whether active or inactive — must submit a tax return to avoid potential legal consequences.
VAT: A growing pillar of non-oil revenue The Authority disclosed that VAT revenue in 2025 alone reached RO 631 million, underlining how the tax has become a major non-oil revenue stream since it took effect in April 2021. Based on VAT performance disclosed for 2025 and the scale of VAT-related revenue in recent budgets, the cumulative take since launch is likely to be above RO 2 billion.
The briefing also covered tax-policy developments domestically and internationally, including legislative reforms and anti-evasion measures, which officials said are intended to strengthen tax fairness, protect public resources and sustain revenues in support of development priorities.
In response to a question from the Observer, Al Jashmi said a study is under way on the potential integration of customs — currently under the Royal Oman Police — with the Tax Authority, with a decision expected after the study’s findings are reviewed.