The first financial device was established in January 1941. Before 1971, financial affairs were managed by the Sultan himself. The Finance Department continued during the stage of formation of the administrative Apparatus of the State in 1970 under the same name; initially composed from three departments, namely, the Central Treasury, the Accounts Audit and the Central Accounts- to which customs and financial planning later adhered.
The Law regulating the Administrative Apparatus of the State No. 26/75 specified the jurisdictions of the Ministry of Finance to include preparation of the budget and follow-up of its implementation, maintenance of the State's accounts, investment of government's reserves, receipt of State's revenues and control its collection, application of tax and duties' laws, propose policies, plans and procedures for the Board of Financial Affairs.The Law also includes the MOF's organizational chart which consists of four departments, namely, the Treasury and Income, Investment and Budget, Final Accounts, and Administrative Affairs.Under RD No. 40/80 which prescribed the regulation of the MOF, the level of some departments were upgraded to the level of Directorates, hence raising the number of public administrations to (5) while the number of departments – whether affiliates of DGs or independent – amounted to (15), along with the Financial Office in Salalah. However, financial tasks continued to be administered through the Directorate General of Finance until the Office of the Deputy Prime Minister for Financial Affairs was later introduced in 1982.
This organization lasted until 1984, when the Royal Decree No. 27/84 approving the Organizational Structure of the Deputy Prime Minister's Office for Financial and Economic Affairs was issued. The Office combined two apparatuses; one for financial and the other for economical affairs, along with the undersecretary of financial affairs and (6) public administrations of (19) departments in addition to the Department of the Executive Committee of the Reserves Fund.
In 1985, the Ministry of Finance and Economy was introduced under the Office of the Deputy Prime Minister for Financial and Economic Affairs by Royal Decree No. 64/85 issued on 22 / August / 1985. This modification has been reflected in the new organizational structure of the Office of the Deputy Prime Minister for Economic and Financial Affairs as both the financial and the economic activities emerged in the organizational divisions of the office: Ministry undersecretaries, Directorates General, and the State's General Reserve Fund. Royal Decree No. 47/94 has provided for the jurisdictions of the Ministry of Finance and Economy, which covered all aspects of financial and economic works, and in particular the proposition to implement financial and economic policies and plans as well as to examine and assess the economic and financial performance and to develop and enhance foreign relations.
The Ministry's Jurisdictions
With the ministerial formation in 1995 under Royal Decree No. 69/95 issued in December 1995, the activities of the Ministry of Finance and Economy were set apart, and new independent Ministries for both activities were introduced and accordingly the Ministry's name was modified to Ministry of Finance instead of the Ministry of Finance and Economy.
The Royal Decree No. 39/96 issued on June 8, 1996 has determined the jurisdictions of the Ministry of Finance and approved its organizational structure. The structure was later modified by the Royal Decree No. 41/2008 issued on 29/3/2008; whereby the Directorate General of Income and Investments was divided into two directorates, namely, the Directorate General of Income and the Directorate General of Investment.
Organs of the Ministry of Finance
The Secretariat General of Taxation is affiliated to the MOF.
Laws regulating the MOF's works
- Royal Decree No. 48/76 related to executing the said domestic and foreign financial transactions, amended by the two RDs No 12/80 & 80/94.
- The Financial Law promulgated by Royal Decree No. 47/98, amended by Royal Decree No. 74/99.
- The System for the Collecting of Taxes, Fees and other amounts payable to the Units of the Administrative Apparatus of the state promulgated by Royal Decree No. 32/94.
- Royal Decree No. 54/97 relating to the imposition of Fees.