Friday 31 / July / 2026
Muscat: The Ministry of Heritage and Tourism has issued a circular outlining the mechanism for collecting and distributing the 8% service charge in tourism and hospitality establishments, requiring all licensed establishments to comply with the new procedures effective immediately.
The circular, issued in accordance with Article 29 of the Executive Regulations of the Tourism Law, will remain in force until the issuance of the regulatory guide governing the distribution of service charges.
Under the circular, tourism and hospitality establishments are required to collect a service charge of 8% of the total amount payable by customers for services provided, in line with the provisions of the executive regulations.
The Ministry emphasized that the entire amount collected as service charges must be distributed in cash to all employees and must not be treated as part of the establishment's revenues or used for any other purpose.
The circular also requires that service charges be distributed to employees on a monthly basis, with establishments maintaining all records and supporting documents related to the distribution process.
In addition, establishments must prepare a detailed statement showing the total service charges collected, the amounts distributed, and the names of beneficiaries. The statement, along with supporting financial documents, must be retained by the establishment, with a copy submitted to the Ministry's Directorate of Financial Affairs.
The Ministry stated that the circular will remain effective until the official regulatory guide is issued, after which establishments will be required to comply with the provisions and procedures set out in the guide.
The circular came into effect on July 30, 2026, and applies to all tourism and hospitality establishments across the Sultanate of Oman.
