On 2 May 2023, Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) issued a statement urging all taxpayers subject to tax laws to take advantage of the Cancellation of Fines and Exemption of Financial Penalties Initiative that is ending on 31 May 2023.
According to ZATCA, the Initiative exempts taxpayers from fines for late registration in all tax laws, delayed payment, overdue tax return filing in all tax laws, VAT return correction, and field detection of violations of e-invoicing and general provisions of VAT.
ZATCA stated that the taxpayer must be registered in the tax law, file all due tax returns with ZATCA, and settle the tax liability of all pending tax returns in full to be eligible for the Initiative. Any taxpayer who wishes to pay their tax liability in instalments may do so by submitting a request to ZATCA within the Initiative’s term, with the understanding that any outstanding instalments must be paid on the due dates established by ZATCA. Tax evasion fines and fines paid before the Initiative’s term are not included, as confirmed by ZATCA.
ZATCA has urged taxpayers to view the Initiative details via the Initiative Simplified Guide available on its website. The information provided includes a detailed explanation of the most notable points mentioned in the Initiative Extension Decision, such as the clarification of the types of fines included, terms of exemption, instalment plans of financial dues, and introduction of field detection violations included in the Initiative along with explanatory examples.
ZATCA calls on all taxpayers to benefit from the Initiative extension until the end of the extension term on 31 May, and to contact the Authority if they have any inquiries via its 24/7 call center hotline (19993), Customer Care Twitter account (@Zatca_Care), via e-mail (info@zatca.gov.sa), or by instant messages on ZATCA’s website (zatca.gov.sa).
It is worth noting that the Cancellation of Fines and Exemption of Financial Penalties Initiative is another stop in ZATCA’s former initiatives to lessen the financial and economic impact and aftermath of COVID-19.
