On 25 July 2023, Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) announced the extension of tax penalty relief measures in response to the COVID-19 pandemic. Accordingly, the taxpayers can be exempted from fines and financial penalties for additional 7 months from 1 June 2023 to 31 December 2023.
Exemption from unpaid fines, including:
- from late registration fines in all tax systems;
- from fines for late payment and late filing of declarations in all tax systems;
- from the value-added tax return correction fine; and
- from fines for field control violations of VAT and electronic billing.
Types of taxes included in the initiative:
- Value-added tax (VAT);
- Withholding tax;
- Excise tax;
- Income tax; and
- Real estate transaction tax (RETT).
