GAZT extends initiative for fine waivers until June 30

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The General Authority of Zakat and Tax (GAZT) extended the initiative to waive fines and financial penalties for taxpayers by another until June 30, 2021, the authority said in a statement. 

Under the initiative taxpayers will be exempted from late payment or late filing penalties. They will be also exempted from declaration amendments penalties under the value-added tax (VAT) law.  

Taxpayers will be 100% exempted from penalties, if they fully pay the principal tax due under the relevant tax returns during the period from January-March 2021. 

GAZT added that 75% of fines will be waived if taxpayers fully pay the principal tax due under the relevant tax returns during the period from April-May 2021. A 50% waiver will also apply to taxpayers that fully pay the principal tax due under the relevant tax returns during June.  

Waivers will also apply to the same penalties that might arise from any assessment or reassessment by GAZT for any tax return that should be submitted ahead of the effective date of this initiative (Jan. 21, 2021). This comes on condition that taxpayers will fully pay the principal tax due under the tax declarations assessed or reassessed by GAZT.  

Waivers will apply according to the periods during which the principal taxes due are paid as mentioned above.  

Moreover, taxpayers will get 100% waiver of unpaid penalties, if the principal tax due was fully paid before Jan. 21. 

On the other hand, GAZT said the initiative does not include any waivers of penalties that were imposed by the authority, other than late payment, late filing and declaration amendment penalties. The initiative does not also cover the fines imposed for tax evasions and the penalties paid before Jan. 21.