ZATCA announced on 27 June 2025 that the Minister of Finance has extended the cancellation of fines and exemption of financial penalties initiative for taxpayers, covering late registration, payment, and filing penalties under all tax laws.
The Saudi Zakat, Tax and Customs Authority (ZATCA) has announced 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 from 1 July to 31 December, 2025.
The initiative provides exemptions from penalties related to late registration in all tax laws, late payment, and late filing of returns. It also includes waivers for VAT return correction fines, penalties for field violations regarding e-invoicing regulations, and general VAT provisions.
In order to benefit from the Initiative, the taxpayer must be registered under the tax law and submit all outstanding tax returns to ZATCA. The taxpayer must also pay all the principal tax debt associated with the returns that will be submitted or modified to accurately disclose the outstanding tax liabilities.
Taxpayers can request an installment payment plan from ZATCA as long as the application is submitted while the initiative is still in effect and all due installments are paid by the due dates specified in the ZATCA-approved installment plan.
ZATCA emphasised that the initiative does not cover penalties related to tax evasion violations, penalties that were paid before the initiative’s effective date, or penalties related to returns that must be submitted to ZATCA after 30 June 2025.
ZATCA has invited taxpayers to view the Initiative details in the simplified guideline that is available on its website. The Guideline includes a detailed explanation of the most important aspects of the decision, such as the types of penalties that are included in the decision, clarifying the conditions for benefiting from the exempt fines and the steps for installment financial dues, as well as introducing the field control violations.
