Saudi Arabia’s Zakat, Tax, and Customs Authority (ZATCA) has reminded taxpayers that its penalty exemption initiative will expire on June 30. The programme offers relief from fines related to delayed registration, filing, and payment under the country’s tax laws, including VAT return corrections and e-invoicing violations.
To qualify, taxpayers must be registered with ZATCA, submit all outstanding tax returns, and pay the full principal tax due. Taxpayers may also request an instalment plan during the initiative period, but all payments must be made on time under the agreed schedule.
The initiative excludes penalties related to tax evasion or any fines paid prior to the initiative’s start. ZATCA has published detailed guidance on its website outlining covered penalties, eligibility criteria, instalment procedures, and examples of violations.
The authority is encouraging all eligible taxpayers to take advantage of the programme before the June 30 deadline.
ZATCA introduced the penalty exemption initiative as part of broader efforts to improve compliance and reduce the administrative burden on businesses. The authority has been increasing its enforcement of e-invoicing regulations and field audits, especially following the full implementation of Phase Two of e-invoicing in 2023.
