The extension allows eligible taxpayers to continue benefiting from exemptions on selected tax penalties, subject to meeting registration, filing and payment requirements.
Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) has announced on 29 June 2026 the Minister of Finance’s decision to extend the “Cancellation of Fines and Exemption of Financial Penalties Initiative” for taxpayers subject to all tax laws for an additional six months, starting from 1 July 2026.
ZATCA clarified that the initiative provides exemptions from penalties related to late registration across all tax laws, late payment, and late filing of returns. It also includes waivers for VAT return correction fines.
ZATCA added that to benefit from the initiative, taxpayers must be registered with ZATCA for tax purposes and submit all outstanding tax returns to ZATCA. The taxpayer must also pay the full principal tax debt associated with the outstanding tax returns. Taxpayers may apply for an instalment payment plan from
ZATCA, provided the request is submitted while the initiative is still in effect and all due instalments are paid by the due dates specified in the ZATCA-approved instalment plan.
ZATCA emphasised that the initiative strictly excludes penalties related to tax evasion violations, fines imposed under Article 45 of the VAT Law, and fines paid prior to the effective date of this initiative. Additionally, it excludes penalties associated with any tax return that becomes due for submission to
ZATCA after 30 June 2026. ZATCA also clarified that in the event a need arises to extend the initiative beyond 31 December 2026, any subsequent extension will not cover the fines associated with any return due for submission to the Authority after 30 June 2026.
ZATCA has invited taxpayers to view the details associated with the initiative through the simplified guidelines available on its website. The guideline provides a detailed explanation of the key aspects of the decision to extend the initiative, including the types of covered fines, exemption conditions, and the steps for the instalment of financial dues, supported by illustrative examples.
ZATCA urges all taxpayers to take advantage of the extended initiative during the specified period, which ends on 31 December 2026. ZATCA encourages them to reach out if they have any inquiries via the unified call centre number (19993), which operates 24/7, or through the “Ask Zakat, Tax and Customs” account on X (@Zatca_Care), via email (info@zatca.gov.sa), or through the instant messaging service on ZATCA’s official website (zatca.gov.sa).
