Saudi Arabia is urging taxpayers to benefit from a waiving and cancellation of fines on paying tax in the Kingdom.
Taxpayers have until the end of May to take advantage of an offer to cancel fines handed out over tax payment in Saudi Arabia.
The Zakat, Tax and Customs Authority (ZATCA) urged all taxpayers to benefit from the Cancellation of Fines and Exemption of Financial Penalties initiative.
Saudi tax fines
ZATCA announced the scheme in November and it expires on May 31.
The authority clarified that the fines covered by the exemption decision include:
- Fines for late registration in all tax systems
- Late payment
- Late filing of returns fines in all tax systems
- Fines to correct VAT returns
- Fines for violations of VAT field control related to applying the e-invoicing regulations and other general regulations.
The initiative stipulated that in order to take advantage of it, a taxpayer had to be registered with the tax system and submit all previously unsubmitted returns to the Authority.
As well as paying all the principal tax debt associated with the returns that will be submitted or modified to accurately disclose the outstanding tax liabilities; taxpayers have the option of requesting an instalment payment plan from the Authority.
Applications must be submitted while the initiative is still in effect and all due instalments should be paid by the due dates specified in the ZATCA-approved instalment plan.
The initiative excludes penalties related to tax evasion violations and fines paid before the initiative’s effective date.
The authority has invited taxpayers to view the details of the initiative through the simplified guideline available on its website, which includes a detailed explanation of the most important aspects of the decision, such as the types of penalties that are included in the decision, clarifying the conditions for benefiting from the exempt fines and the steps for instalment financial dues, as well as introducing the field control violations.
The Saudi authority has urged all taxpayers to benefit from the initiative during the allotted time, which ends at the end of May.
The cancellation of fines and exemption from financial penalties is a part of the Authority’s previous initiatives, which were implemented to reduce the economic and financial impacts of the COVID-19 pandemic and its repercussions, as the authority relaunched it in early June 2022.
Visit the ZATCA website or call the authority on 19993 for more information.
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