Muscat: Value added tax (VAT) touched RO 631 million out Oman's total tax kitty of RO 1.373 billion underlining how it has become a major non-oil revenue stream since it took effect in April 2021.
Income tax yielded RO 658 million and and excise tax RO 84 million.
In a media briefing in Muscat on Thursday, Nasser bin Khamis al Jashmi, Chairman of the Tax Authority, said 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.
The number of tax returns submitted in 2025 reached 353,000, achieving a growth of 37 per cent compared to 2024, reflecting improved voluntary compliance, the effectiveness of awareness efforts and system development.
The Chairman of the Tax Authority clarified that the government will implement the VAT refund service for tourists after reaching an agreement with the companies providing this service.
Said bin 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.
Mahmoud bin 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 per cent, VAT registrants by 120 per cent and Excise Tax registrants by 222 per cent in 2025 compared to 2021.
Al Rubaie said the Authority seeks to implement modern systems, including digital 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.
TOTAL TAX : RO 1.373 billion
VAT:RO 631 million
Income tax: RO 658 million
Excise tax: RO 84 million
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