Oman to impose prison time RO 20,000 fines for tax violations
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As Oman prepares to roll out the Gulf’s first personal income tax in January 2028, the government has introduced strict penalties for those who fail to comply.
The new tax will apply to individuals earning more than RO 42,000 a year, which represents the top 1% of income earners in the country. Alongside the tax, authorities have put in place a two-tiered penalty system to ensure compliance and prevent tax evasion.
Under Article 65, people who fail to file their tax returns, ignore official notices or delay payments without a valid reason will face fines between RO 1,000 and RO 5,000.
For more serious violations, Article 66 allows for criminal penalties. Individuals who submit false declarations, hide income or fake tax records can be sentenced to one to three years in prison and fined between RO 10,000 and RO 20,000.
The law was announced in June 2025 as part of Oman’s long-term Vision 2040 plan. The goal is to reduce the country's reliance on oil, which still makes up about 85% of public income and build a more stable financial system.
Officials say the new penalties show the government’s serious approach to enforcing the tax system. Tax authorities will have wide powers to investigate and take action against anyone who breaks the rules.
