Saudi Arabia Issues Tax Update

Saudi Arabia has urged taxpayers to take advantage of a waiver on fines and penalties before June 30.

The Zakat, Tax, and Customs Authority (ZATCA) has called on all taxpayers subject to tax regulations to take advantage of the Cancellation of Fines and Exemption of Penalties Initiative, which is set to end on June 30.

The authority noted that the initiative includes exemptions from penalties related to late registration in all tax systems, late payment, and late filing of tax returns, in addition to VAT return correction penalties and violations related to field audits concerning e-invoicing regulations and other general provisions of the VAT Law.

Saudi tax fines

To benefit from the initiative, taxpayers must be registered in the tax system, submit all due tax returns to ZATCA, and pay the full principal amount of the tax debt related to those returns.

Taxpayers may also request instalment plans, provided the request is submitted within the initiative period and that all instalments are paid on time according to the plan approved by the authority.

The initiative does not cover penalties related to tax evasion or penalties already paid before the initiative’s effective date.

The authority also urged taxpayers to review the simplified guidelines available on its official website, which explain in detail the key points of the extended initiative, including the types of fines covered, exemption conditions, steps for requesting instalment payments, and examples of field violations included in the initiative.

ZATCA called on all Saudi taxpayers to make use of the extended initiative within the specified period ending on June 30.

For inquiries, taxpayers can contact the authority through:

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