On 21 January 2021, the General Authority of Zakat and Tax (GAZT) of Saudi Arabia has issued a press release, through which they cancel the fines and exemption from financial penalties for taxpayers until 30 June 2021 in response to the COVID-19 pandemic.

Before 21 January 2021, the penalties arising from late filing of tax returns and late payment of taxes that were due will be waived as follows:

  • If the tax due is fully paid by 31 March 2021, 100% of the penalties will be waived;
  • If the tax due is fully paid by 31 May 2021, 75% of the penalties will be waived; and
  • If the tax due is fully paid during June 2021, 50% of the penalties will be waived.

The relief will not apply to any penalties that were paid before 21 January 2021, or to penalties regarding tax evasion.