The Saudi Zakat, Tax, and Customs Authority (ZATCA) has issued a statement urging all taxpayers to take advantage of the “Cancellation of Fines and Exemption of Penalties Initiative,” which is set to conclude on 31 December 2024.
Fines covered by the exemption include fines for late registration, late payment, late filing of returns in all tax laws, and fines to correct VAT returns, as well as fines for violations of VAT field control related to applying the e-invoicing regulations and other VAT general regulations.
The Initiative stipulated that for a taxpayer to benefit from the exemption, taxpayers had to be registered with the tax system and submit all previously un submitted returns to ZATCA, as well as paying all the principal tax debt associated with the outstanding returns.
Taxpayers can also request an instalment plan from ZATCA as long as the application is submitted while the initiative is still in effect and all due instalments are paid by the due dates specified in the Authority-approved instalment plan. It is important to note that the Initiative excludes penalties related to tax evasion violations and fines paid before the initiative’s effective date.
ZATCA invites taxpayers to view the details of the initiative through the simplified guideline available on its website, which includes a detailed explanation of the most important aspects of the decision; such as the types of penalties that are included in the decision, the conditions for benefiting from the exempt fines and the steps for instalment financial dues, and field control violations.
