Saudi Arabia is extending an exemption on paying fines for tax violations until the end of the year.
The Zakat, Tax and Customs Authority (ZATCA) announced the Minister of Finance’s statement of the extension of the Cancellation of Fines and Exemption of Financial Penalties Initiative for taxpayers subject to all tax laws for six months until December 31, 2024.
ZATCA stated that the extension of the initiative is motivated by its desire to help taxpayers who meet the requirements benefit from it to meet the initiative’s objectives, notably reducing the adverse economic impact on businesses of the COVID-19 pandemic.
Saudi tax fines
ZATCA has also stated that the fines covered by the exemption decision include:
- Fines for late registration in all tax laws
- Late payment
- Late filing of returns in all tax laws
- Fines to correct VAT returns
- Fines for violations of field control related to applying the e-invoicing regulations and other general VAT provisions
In order to benefit from the initiative, the taxpayer must be registered at the tax law and submit all previously non-submitted returns to ZATCA.
The taxpayer must also pay all the principal tax debt associated with the returns that will be submitted or modified to disclose the outstanding tax liabilities accurately.
Taxpayers can request an instalment payment plan from ZATCA as long as the application is submitted while the initiative is still in effect and all due instalments are paid by the due dates specified in the Authority-approved instalment plan.
It is essential to note that the initiative excludes penalties related to tax evasion violations and fines paid before the initiative’s effective date.
ZATCA has invited taxpayers to view the initiative details in the simplified guideline available on its website.
The guideline includes a detailed explanation of the most important aspects of the decision, such as the types of penalties included in the decision, clarifying the conditions for benefiting from the exempt fines and the steps for instalment financial dues, and introducing the field control violations.
ZATCA urges all taxpayers to benefit from the initiative during the allotted time and encourages individuals to contact it if they have any inquiries via:
- Phone: 19993
- X: @Zatca_Care
- E-mail: [email protected]
- Online: www.zatca.gov.sa
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