Oman’s Tax Authority 2026 Compliance Push: What It Means for Your Business After RO 1.373 Billion Revenue in 2025
MUSCAT — Oman’s Tax Authority has begun 2026 with a clear commitment to making tax filing simpler, improving clarity of information, and maintaining continuous engagement with the public.
The Authority held its first media briefing of the year in Muscat on Thursday, aiming to strengthen collaboration with national media, share information, and enhance public awareness of tax matters.
In his opening remarks, Nasser Khamis al Jashmi, Chairman of the Tax Authority, emphasized the vital role of the media as a key partner in communicating tax-related issues to society. He highlighted that transparency and ongoing dialogue are crucial for raising awareness and encouraging voluntary compliance.
Al Jashmi described taxation as a fundamental pillar of fiscal sustainability and an essential tool for balancing the national budget. He underlined its importance in funding public services, supporting social protection programs, and facilitating infrastructure development.
Senior officials outlined the Authority’s strategic goals in alignment with Oman Vision 2040, focusing on continuous improvement of performance and enhancement of taxpayer services.
The Director General of Operations and Tax Services reported that the Authority achieved its 2025 targets, with tax revenues estimated at approximately RO 1.373 billion. Tax return submissions rose to around 353,000 in 2025, marking a 37% increase from 2024—a growth attributed to stronger voluntary compliance and effective awareness campaigns.
Addressing concerns of smaller businesses, the Director General reassured that these firms have ample legal time to submit returns via the Authority’s online platform, which is designed to be user-friendly. For most small businesses, filing tax returns generally does not require an external audit by a licensed accountant. He also stressed that all entities holding commercial registration, whether active or inactive, must file tax returns to avoid potential legal repercussions.
The Authority revealed that Value Added Tax (VAT) revenue for 2025 alone reached RO 631 million, demonstrating its significance as a major non-oil source of revenue since its implementation in April 2021. With VAT contributions over recent years, the cumulative revenue from this tax is estimated to exceed RO 2 billion.
The briefing also addressed recent domestic and international tax policy developments, including legislative reforms and anti-evasion measures designed to promote fairness, safeguard public funds, and sustain revenue streams to support national development priorities.
Responding to a question from Oman Observer, Chairman Al Jashmi confirmed that a study is underway regarding the potential integration of customs—currently managed by the Royal Oman Police—into the Tax Authority. A decision will be made following the review of the study’s findings.
This proactive approach signals Oman’s Tax Authority’s dedication to enhancing transparency, compliance, and public engagement as it navigates a critical year ahead.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s Tax Authority’s 2026 approach—emphasizing simplified filing, transparency, and continuous public engagement—signals a crucial shift toward fostering stronger voluntary compliance and broader economic participation. The substantial VAT revenue growth to RO 631 million in 2025 highlights VAT as a major non-oil revenue pillar, presenting opportunities for businesses to adapt tax strategies proactively. Smart investors and entrepreneurs should prioritize compliance readiness and leverage transparency initiatives to navigate evolving regulations and capitalize on Oman’s Vision 2040-aligned fiscal landscape.
