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logo of The Zakat, Tax and Customs Authority (ZATCA)
The Zakat, Tax and Customs Authority (ZATCA) extended the cancellation of fines and exemption of penalties initiative until June 30, 2024.
The initiative was earlier extended to Dec. 31, 2023, to help taxpayers who meet the requirements benefit from this initiative to mitigate the COVID-19 pandemic economic impacts, ZATCA said in a statement.
ZATCA added that the fines covered by the exemption decision include fines for late registration in all tax systems, late payment, late filing of returns in all tax systems, and fines to correct VAT returns, as well as fines for violations of VAT field control related to applying the e-invoicing regulations and other general regulations.
To benefit from this initiative, a taxpayer must be registered with the tax system to submit all previously unsubmitted returns to ZATCA. A taxpayer should 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.
An application must be 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. The initiative excludes penalties related to tax evasion violations, and fines paid before the initiative's effective date.
ZATCA invited taxpayers to view the details of the initiative through the simplified guideline available on its website, which includes a detailed explanation of the decision.
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