Saudi ArabiaMoney & Business

Saudi Arabia announces major tax fine exemptions

Saudi Arabia has announced the cancellation of fines and further exemptions for taxpayers in the country.

The fine cancellations include for late payment, VAT irregularities and organisations filing late returns.

However, authorities in Saudi Arabia said the deadline for availing the fine exemptions is approaching.

Saudi tax fine exemptions

Saudi Arabia’s Zakat, Tax and Customs Authority urged all taxpayers to benefit from the initiative, “Cancellation of Fines and Exemption of Financial Penalties”, which ends next December 31, 2023.

The authority has also clarified that the fines covered by the exemption decision include fines for:

  • Late registration in all tax systems
  • Late payment
  • Late filing of returns fines in all tax systems
  • Fines to correct VAT returns

It also covers fines for violations of VAT field control related to applying the e-invoicing regulations and other VAT general regulations.

The initiative stipulated that in order to take advantage of it, a taxpayer had to be registered with the tax system and submit all previously unsubmitted returns to the authority in Saudi Arabia.

As well as paying all the principal tax debt associated with the returns that will be submitted or modified to accurately disclose the outstanding tax liabilities, taxpayers have the option of requesting an instalment payment plan from the authority.

Instalment payment plans can be paid, 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

The initiative excludes penalties related to tax evasion violations and fines paid before the initiative’s effective date.

The authority has invited 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.

It explains the types of penalties that are included in the decision, clarifying the conditions for benefiting from the exempt fines and the steps for instalment financial dues, as well as introducing the field control violations.

The Saudi tax authority urged all taxpayers to benefit from the initiative during the allotted time, which ends at the end of December, and has also urged them to contact it if they have any inquiries via the unified call centre number (19993), on email (info@zatca.gov.sa), or via the ZATCA website.

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Arabian Business

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