ZATCA extends fine exemption initiative until June 2025

Logo of The Zakat, Tax and Customs Authority (ZATCA)

The fines covered by the exemption decision include for late registration in all tax systems, late payment, late filing of returns in all tax systems, and fines to correct VAT returns, as well as for violations of VAT field control related to applying the e-invoicing regulations and other general regulations, the Saudi Press Agency reported.

ZATCA pointed out that in order to benefit from the initiative, the taxpayer must be registered in the tax system and submit all required declarations that have not been previously submitted. In addition, the taxpayer must disclose all unreported taxes accurately, and pay the full principal tax debt related to the declarations that will be submitted or amended to correctly disclose the outstanding tax liabilities.

Taxpayers may also apply to ZATCA for installment payments, provided the application is made during the validity of the initiative, and all payments are on time in accordance with the installment plan approved by the authority.

The authority highlighted that the initiative does not cover fines related to tax evasion violations, fines that have already been paid before the effective date of this initiative, and fines related to declarations that are due to be submitted to ZATCA after Dec. 31, 2024.

ZATCA encouraged taxpayers to review the details of the initiative and the provisions it includes through the simplified guide available on its website. The guide provides a detailed explanation of the key elements of the exemption decision, including clarifying the types of fines covered, the conditions for benefiting from exemptions related to each fine type, the steps for installment payments of financial dues, and a description of the field control violations covered by the initiative, with illustrative examples.

ZATCA urged all taxpayers to take advantage of the extended initiative within the specified period.