Oman Achieves ‘Largely Compliant’ Status in OECD Tax Transparency: Implications for Investors and Businesses
MUSCAT: The Sultanate of Oman has received a significant endorsement from the Organisation for Economic Co-operation and Development’s (OECD) Global Forum on Transparency and Exchange of Information for Tax Purposes, achieving an overall rating of Largely Compliant in its 2025 Second Round Peer Review. This rating emphasizes Oman’s strong commitment to international tax transparency standards and highlights the substantial reforms the country has undertaken in recent years.
This peer review is Oman’s first complete evaluation since joining the Global Forum in 2018. The assessment, which covers the period from January 2021 to December 2023, examined both Oman’s legal and regulatory framework as well as the practical implementation of the international standard for Exchange of Information on Request (EOIR).
The review confirms that Oman performed well across most of the assessed areas. Out of 11 core elements evaluated, Oman was rated Compliant in nine, including critical areas such as access to banking information, information confidentiality, and effective exchange mechanisms. These findings reflect the strength of Oman’s legal framework and the efficiency of its administrative practices.
The report underscores the comprehensive banking supervisory system established in Oman, which mandates that banks retain client records for ten years and adhere to strict rules regarding beneficial ownership identification. Additionally, the Oman Tax Authority (OTA) possesses extensive powers to access pertinent data and has bolstered collaboration with various government entities through memoranda of understanding.
From an operational standpoint, Oman has made notable advancements. The OTA has set up a dedicated EOIR unit and created manuals and guidance to assist tax officials. Impressively, all EOIR requests made in 2022 and 2023 were addressed within the 90-day international benchmark, marking an improvement from 2021, which was influenced by post-pandemic adjustments and internal restructuring.
Two areas—availability of ownership and identity information (A.1) and accounting information (A.2)—were rated Largely Compliant, reflecting ongoing reforms in these transitional areas. Recent legal enhancements regarding beneficial ownership have been initiated with the introduction of the Beneficial Ownership Regulation in 2023, requiring most companies to maintain ownership registers and provide this information upon request.
The Ministry of Commerce, Industry, and Investment Promotion is actively working on establishing a central beneficial ownership register, which is crucial for ensuring accurate and timely information access. Although some aspects require improvement, such as formalizing obligations for regular updates and enhancing oversight, Oman’s initiatives are already underway and expected to further strengthen compliance.
The report also highlights the OTA’s efforts to enhance the availability of accounting records, particularly for low-activity entities. While challenges remain concerning tax return filing rates and oversight of inactive companies, these issues are viewed as part of a broader, forward-looking reform strategy.
Oman’s engagement in the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, alongside eight bilateral tax agreements, further underscores its dedication to international cooperation. The country’s legal provisions regarding confidentiality and professional secrecy align with global standards.
Looking ahead, Oman will submit its first self-assessment report under the Global Forum’s enhanced monitoring program in 2026, with biennial updates to follow. This mechanism aims to promote continuous improvement and ensure that member countries keep pace with evolving international standards.
Oman’s largely compliant rating positions it favorably among peer jurisdictions and indicates a growing confidence in the nation’s financial and tax governance systems. With ongoing reforms, Oman is well poised to achieve full compliance in future evaluations.
Special Analysis by Omanet | Navigate Oman’s Market
The OECD’s Largely Compliant rating for Oman signals a pivotal shift that bolsters investor confidence and positions the country favorably in the global market. This presents opportunities for businesses seeking a transparent regulatory environment, particularly in sectors like finance and real estate that benefit from stringent tax frameworks. However, potential risks include operational adjustments as businesses adapt to new compliance requirements, underscoring the need for strategic foresight and readiness among investors and entrepreneurs to harness these developments effectively.
