Oman To Impose Fines Up To RO 20,000, Jail Time For Income Tax Defaulters
The law, which applies to individuals earning over RO 42,000 annually, the top 1 per cent of earners in the country, features a two-tiered penalty system for non-compliance, designed to ensure transparency and deter tax evasion.
Under Article 65, individuals who fail to file their tax returns, disregard official notices from tax authorities, or delay payment without valid justification face administrative fines ranging from RO 1,000 to RO 5,000.
For more serious infractions, Article 66 provides for criminal penalties. Those found guilty of submitting false declarations, concealing income, or falsifying tax records could face prison sentences ranging from one to three years and fines between RO 10,000 and RO 20,000.
The legislation, announced in June 2025, represents a critical component of Oman's fiscal reform agenda and its Vision 2040 plan, aimed at reducing reliance on oil revenues and strengthening state finances.
Minister of Economy Said bin Mohammed Al Saqri has previously emphasised the country's vulnerability to global oil price volatility, noting that oil and gas still account for up to 85 per cent of public income.
Tax experts say the inclusion of criminal penalties for non-filers signals the government's intent to implement the new system with a high degree of seriousness and compliance oversight.
The law gives Omani tax authorities broad powers to investigate discrepancies and enforce penalties, setting a precedent in a region historically known for tax-free personal income policies.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Gulf Insider
12-07-2025
- Gulf Insider
Five Dead, Including Three Emiratis, In Oman Highway Multi-Vehicle Crash
A collision involving three vehicles occurred early Friday on Sultan Said bin Taimur Road, after Maqshan in Oman's Dhofar Governorate, the Royal Oman Police confirmed on social media. The accident took place around 7:00 am and resulted in the deaths of five people — two Omani citizens and three Emirati nationals. An additional 11 people were injured, including two Omanis and nine Emiratis, among them five children. Authorities said the injuries vary in severity. وقوع حادث تصادم بين ثلاث مركبات على طريق السلطان سعيد بن تيمور بعد ولاية مقشن بمحافظة ظفار في تمام الساعة السابعة من صباح اليوم، وتشير المعلومات الأولية إلى وفاة خمسة أشخاص بينهم مواطنين اثنين وثلاثة مواطنين إماراتيين وإصابة أحد عشر شخصاً بإصابات مختلفة منهم مواطنين اثنين وتسعةٌ… — شرطة عُمان السلطانية (@RoyalOmanPolice) July 11, 2025 The ROP shared images from the scene and confirmed that police aviation transported the victims' bodies to Thumrait Hospital. طيران الشرطة ينفذ عملية نقل جثامين الأشخاص الذين قضوا نحبهم جرّاء الحادث الأليم الذي وقع صباح اليوم بعد ولاية مقشن في محافظة ظفار إلى مستشفى ثمريت. نرجو الله لهم الرحمة والمغفرة وأن يُلهم ذويهم الصبر والسلوان.. إنا لله وإنا إليه راجعون. #شرطة_عمان_السلطانية — شرطة عُمان السلطانية (@RoyalOmanPolice) July 11, 2025 Emergency services responded swiftly, and authorities have launched an investigation into the cause of the crash, which remains ongoing.


Gulf Insider
10-07-2025
- Gulf Insider
Oman Labour Ministry: Visa Renewal Grace Period Ends On July 31 — Final Call To Avoid Fines
The Ministry of Labour has issued a final reminder to all individuals, employers, and workers that the grace period for rectifying legal employment status — including labour card (visa) renewals without fines — will end on July 31, 2025. The ministry has urged all concerned parties to make use of the ongoing exemption and waiver package, warning that no applications will be accepted after the deadline. 'The Ministry of Labour reminds all individuals, employers, and workers that the grace period for rectifying legal status will end on 31 July 2025. No applications submitted after this date will be considered,' the alert stated. This final reminder follows a January announcement, when the Omani Cabinet approved a comprehensive waiver initiative valued at up to 60 million Omani rials ($156 million). The initiative aims to improve workforce regulation, protect the rights of workers and employers, and support a more efficient labour market. Cancellation of fines and dues for expired labour cards inactive for over seven years. Exemption from paying repatriation costs (airfare) for workers who left Oman before 2018. Cancellation of labour cards unused for over 10 years, provided there were no related service requests. Waivers for liquidated companies if workers are repatriated or their services transferred. Six-month grace period (February 1–July 31, 2025) to regularise worker status and avoid fines, subject to: Labour card renewal and fee payment for the next two years. Cancellation of absconding (work abandonment) reports. Transfer of services or payment of repatriation costs. Applications will only be accepted between February 1 and July 31, 2025 through the Ministry's website and approved service channels. Oman's expatriate workforce continues to be led by nationals from Bangladesh (622,078), India (507,956), and Pakistan (314,997). Together, they represent over 80% of the country's expat labour force.


Gulf Insider
07-07-2025
- Gulf Insider
Oman To Impose Fines Up To RO 20,000, Jail Time For Income Tax Defaulters
As Oman prepares to implement the Gulf's first personal income tax in January 2028, authorities have outlined strict enforcement measures, including fines reaching up to RO 20,000 and prison terms for violators. The law, which applies to individuals earning over RO 42,000 annually, the top 1 per cent of earners in the country, features a two-tiered penalty system for non-compliance, designed to ensure transparency and deter tax evasion. Under Article 65, individuals who fail to file their tax returns, disregard official notices from tax authorities, or delay payment without valid justification face administrative fines ranging from RO 1,000 to RO 5,000. For more serious infractions, Article 66 provides for criminal penalties. Those found guilty of submitting false declarations, concealing income, or falsifying tax records could face prison sentences ranging from one to three years and fines between RO 10,000 and RO 20,000. The legislation, announced in June 2025, represents a critical component of Oman's fiscal reform agenda and its Vision 2040 plan, aimed at reducing reliance on oil revenues and strengthening state finances. Minister of Economy Said bin Mohammed Al Saqri has previously emphasised the country's vulnerability to global oil price volatility, noting that oil and gas still account for up to 85 per cent of public income. Tax experts say the inclusion of criminal penalties for non-filers signals the government's intent to implement the new system with a high degree of seriousness and compliance oversight. The law gives Omani tax authorities broad powers to investigate discrepancies and enforce penalties, setting a precedent in a region historically known for tax-free personal income policies.