Oman’s Tax Authority has announced revisions to the Executive Regulation of the Income Tax Law, introducing new conditions for deducting certain corporate expenses and mandating the exclusive use of a digital identity application for accessing its electronic services.

The amendments, effective for tax years beginning January 1, 2027, set specific criteria for the deductibility of business expenses incurred as a result of decisions issued by state administrative bodies and public entities. According to the updated regulation, such expenses will be deductible only if they are integral to a company's primary business activities, explicitly approved by the Chairman of the Tax Authority, and do not violate any legal obligations. These changes override any prior conflicting provisions.

In a separate but related update, the Tax Authority requires all taxpayers and users of its electronic portal to utilize the THEQA digital identity application starting August 1, 2026. This mandate aims to enhance identity verification processes and strengthen the security framework of the authority’s online services.

To ensure seamless access, users must download the THEQA app and register their Civil ID details, while also confirming their smartphone supports Near Field Communication (NFC) technology. Following registration, users can log into the portal by selecting the “Login via Digital Identity (THEQA App)” option, either by scanning a QR code displayed on the portal or by entering their Civil Number and authorizing the login via the app.

The Tax Authority has urged users to complete the registration and activation steps ahead of the August deadline to avoid any disruption to their ability to access electronic tax services.