Saudi Arabia Extends Tax Penalty Waiver For Six Months

In a statement carried by Saudi Gazette, the Saudi Zakat, Tax and Customs Authority said the Minister of Finance had issued a decision to extend the tax penalty waiver initiative starting from 1 January 2026. The previous six-month period of the initiative expired on 31 December 2025.

Under the extension, taxpayers subject to all tax systems will continue to be exempt from paying certain fines and financial penalties until 30 June 2026. ZATCA urged taxpayers to take advantage of the initiative before the new deadline.

The authority explained that the initiative provides exemptions from fines imposed for late registration in all tax systems, late payment, and late submission of tax returns. It also covers fines related to correcting value-added tax returns, penalties for field inspection violations linked to the application of electronic invoicing regulations, and other general VAT-related penalties.

Saudi tax penalties waived further

ZATCA outlined a number of requirements that taxpayers must meet in order to benefit from the waiver. Taxpayers must be registered in the relevant tax system, submit all required tax returns to the authority, and pay the full principal amount of any outstanding tax liabilities.

The authority added that taxpayers are permitted to apply for an instalment plan to settle their tax dues. Such applications must be submitted during the validity period of the initiative, and all instalments must be paid on their scheduled due dates in line with the instalment plan approved by ZATCA.

ZATCA clarified that the initiative does not apply to penalties related to tax evasion violations. It also does not cover penalties that were paid before the initiative came into effect.

Taxpayers were encouraged to review the details of the initiative through a simplified guide available on the ZATCA website. The guide explains the main elements of the decision to extend the waiver, including the types of fines covered, the conditions required for exemption, and the procedures for paying outstanding amounts through instalments. It also includes examples of field enforcement violations covered by the initiative.

ZATCA reiterated its call for taxpayers to benefit from the extension, which runs until 30 June 2026.

For further information or enquiries, taxpayers can contact the authority through its 24-hour unified call centre on 19993, via the “Ask Zakat, Tax and Customs” account on the X platform (@Zatca_Care), by email at [email protected], or through the live chat service available on the ZATCA website.