Saudi Arabia updates tax fine waiver and penalty exemption initiative
The "Cancellation of Fines and Exemption of Penalties" initiative of the Zakat, Tax, and Customs Authority (ZATCA) of Saudi Arabia has been extended until June 30, 2024.
Saudi Arabia Extends Tax Fine Waiver to Alleviate COVID-19 Impact
The aforementioned extension affords relevant entities in Saudi Arabia an additional six months to meet their tax obligations without facing fines or penalties.
Motivation Behind Extension
ZATCA highlighted that the initiative's extension, initially set to conclude on December 31, is driven by the aim of assisting qualifying taxpayers in mitigating the repercussions of the ongoing COVID-19 pandemic.
Covered Fines and Regulations
Penalties for late payment, late submission of returns across all tax laws, late registration across all tax laws, fines for correcting VAT returns, and penalties for violating VAT field control regulations associated with e-invoicing and other overarching regulations are all covered by the decision to grant exemptions.
Eligibility criteria and submission requirements
To leverage the initiative, Saudi Arabian taxpayers must be registered with the tax law and submit all previously unfiled returns to ZATCA. Additionally, taxpayers are required to settle the principal tax debt associated with the returns submitted or modified to accurately disclose outstanding tax liabilities. Those seeking relief can also request an installment payment plan from ZATCA. The application must be submitted while the initiative is still active, and all due instalments must be paid by the specified dates in the authority-approved instalment plan.
Exclusions and Communication Channels
It is important to highlight that the initiative eliminates penalties for tax evasion and fines paid prior to the initiative's effective date. ZATCA has invited taxpayers to become acquainted with the details of the programme by using the simplified guidelines available on its website. The guideline thoroughly describes critical issues such as the types of penalties addressed, the conditions for receiving exempt fines, the methods for paying financial debts in installments, and an introduction to field control infractions.
Encouragement for Utilisation and Inquiries
ZATCA has encouraged all eligible taxpayers to take advantage of the initiative during the specified timeframe. Additionally, taxpayers with inquiries are urged to reach out to ZATCA through various communication channels, including telephone (19993), X: @Zatca_Care, email ([email protected]), and the online platform (zatca.gov.sa). This proactive approach emphasises the authority's commitment to supporting taxpayers during challenging economic circumstances.
