Saudi Arabia: Initiative to cancel fines for taxpayers extended to June

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, 2024.

The initiative was earlier extended to Sunday, December 31, 2023, allowing eligible taxpayers to benefit from it to mitigate the economic impacts of the COVID-19 pandemic.

Fines covered by the exemption decision include

• 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 benefit from the initiative, taxpayers must register, submit unsubmitted returns to ZATCA, pay the principal tax debt, and request installment payment plans.

The application must be submitted during the current initiative and all installments must be paid according to the ZATCA-approved installment plan.

The authority urged taxpayers to benefit from the extension of the deadline and to contact ZATCA with any inquiries.