Relief Initiative Supports Tax Compliance
Saudi Arabia has extended its Cancellation of Fines and Exemption of Penalties Initiative for another six months, providing much-needed relief to taxpayers. The initiative, spearheaded by the Zakat, Tax and Customs Authority (ZATCA), will now be effective until June 30, 2025, promoting compliance and easing financial pressures.
Scope of the Initiative
The extended initiative applies to various penalties, including:
- Late registration fines
- Late payment penalties
- Delayed filing of tax returns
- VAT corrections and errors in submitted returns
- E-invoicing violations and other general VAT infractions discovered during inspections
However, it excludes fines related to:
- Tax evasion
- Penalties paid before the initiative’s start
- Tax returns due after December 31, 2024
Eligibility Requirements
To benefit from the exemption, taxpayers must:
- Be registered in the tax system.
- Submit all outstanding tax returns with accurate disclosures.
- Fully pay the principal tax amount owed on returns.
Taxpayers can also opt for installment plans during this period, provided all payments adhere to the approved schedule.
Guidance and Support
ZATCA has released a simplified guide on its website detailing:
- Exemption conditions
- Procedures for installment requests
- Comprehensive examples of violations and penalties
The authority encourages taxpayers to review the guide for clarity and to reach out with any inquiries via official communication channels.
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ZATCA Statement:
“This initiative underscores our commitment to fostering a culture of compliance while supporting taxpayers in fulfilling their obligations in a simplified and efficient manner.”
The extension of Saudi Arabia’s tax fine exemption initiative demonstrates the government’s proactive approach to supporting taxpayers and improving compliance. Eligible individuals and entities are encouraged to act promptly to benefit from this relief measure before the June 30, 2025 deadline.
