ZATCA Extends Tax Relief Initiative to Ease Economic Impact Until 2024

KSA, 1 July, 2024 : The Zakat, Tax and Customs Authority (ZATCA) has announced the extension of the Cancellation of Fines and Exemption of Financial Penalties Initiative until 31 December 2024. This initiative, aimed at taxpayers under all tax laws, seeks to alleviate the economic impact of the Covid-19 pandemic by offering relief from fines and penalties.

Under the extension, eligible taxpayers can benefit by meeting specific criteria, including registration under tax laws and submission of all outstanding returns to ZATCA. They must also settle all principal tax debts associated with these returns. Installment payment plans are available upon request, provided all installments are paid by agreed-upon deadlines.

The initiative covers fines for late registration, payment, and filing of returns across all tax laws, as well as penalties related to VAT return corrections and violations of e-invoicing regulations. Notably, fines for tax evasion violations and those paid before the initiative's effective date are excluded.

ZATCA encourages taxpayers to review detailed guidelines available on its website, outlining the types of penalties covered, eligibility requirements, and steps for managing financial obligations. 

This extension underscores ZATCA's commitment to supporting businesses through challenging economic conditions and facilitating compliance with tax regulations.

Source : www.zatca.gov.sa