On 6 October 2020, 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 31 December 2020 in response to the COVID-19 pandemic.
The authority stated that the taxpayers who have objections or claims to the authority’s decisions were submitted before the date of 30 September 2020 and no final decision was issued in their regard by the competent judicial authority. They can benefit from the initiative to cancel fines and exempt from financial penalties extended from the date of 1 October 2020 until 31 December 2020, provided that the taxpayer commits to pay the tax due, or requests it to be paid in installments no later than 31 December 2020, confirming that the initiative does not include the financial fines inflicted on the right of the taxpayer for a tax evasion violation.
Penalties for the declarations submitted or amended during this period will be waived, such as (i) Declaration Amendment Penalty, (ii) Late Payment Penalty, and (iii) Late Filing Penalty.
The tax relief measures cover all types of taxes: CIT (including Withholding Tax), VAT, and Excise tax. The tax due should be paid or an installment plan request should be submitted by 31 December 2020. GAZT also issued Guidance regarding this extension measures on its website.
