Saudi Arabia extends tax amnesty initiative

Riyadh: The Kingdom of Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) has extended the cancellation of fines and exemption of penalties initiative until June 30, 2025.

The initiative was earlier extended to Tuesday, December 31, 2024, allowing eligible taxpayers to benefit from it to mitigate the economic impacts of the COVID-19 pandemic.

Types of taxes included

• Value added tax (VAT)
• Withholding tax
• Excise tax
• Income tax
• Real estate transaction tax (RETT)

Tax amnesty initiative covers penalties 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 VAT field control violations related to e-invoicing regulations and other VAT general regulations.

To qualify, taxpayers must be registered in the tax system, submit all outstanding returns with accurate tax disclosure, and pay the principal tax owed on submitted or amended returns.

During the initiative period, taxpayers can request installment plans, provided they are paid on time and in accordance with the approved plan.

The initiative excludes fines for tax evasion, paid before its effective date, and fines for returns due after December 31, 2024.

The authority urged taxpayers to utilize the extension of the initiative and requested inquiries to be addressed via the unified call center number (19993).