ZATCA Announces Decision of Minister of Finance about Exemption of Financial Penalties Initiative Until 30 June 2025

The Zakat, Tax and Customs Authority (ZATCA) announced the Minister of Finance’s decision of the extension of the Cancellation of Fines and Exemption of Financial Penalties Initiative for taxpayers subject to all tax laws for 6 months until 30 June 2025.

The initiative provides exemptions from penalties related to late registration in all tax laws, late payment, and late filing of returns. It also includes waivers for VAT return correction fines, penalties for field violations regarding e-invoicing regulations, and general VAT provisions.

In order to benefit from the Initiative, the taxpayer must be registered at the tax law and submit all previously non-submitted returns to ZATCA. The taxpayer must also 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 as long as the application is submitted while the initiative is still in effect and all due installments are paid by the due dates specified in the Authority-approved installment plan. ZATCA emphasized that the initiative does not cover penalties related to tax evasion violations, penalties that were paid before the initiative's effective date, or penalties related to returns that must be submitted to ZATCA after 31 December 2024.

ZATCA has invited taxpayers to view the Initiative details in the simplified guideline that is available on its website. The Guideline includes a detailed explanation of the most important aspects of the decision, such as the types of penalties that are included in the decision, clarifying the conditions for benefiting from the exempt fines and the steps for installment financial dues, as well as introducing the field control violations.

ZATCA urges all taxpayers to benefit from the Initiative during the allotted time, and encourages individuals to contact it if they have any inquiries, via the 24/7 unified call center number (19993), or through X Account (@Zatca_Care), e-mail (info@zatca.gov.sa), or instant messaging through ZATCA's website (zatca.gov.sa).