ZATCA Extends Tax Penalty Waiver Initiative Until 31 December 2025

KSA, 01 July, 2025 : Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) has extended its penalty waiver initiative until 31 December 2025, following a decision by the Minister of Finance. The six-month extension, effective from 1 July 2025, offers exemptions on fines for late registration, late payment, late return filing, and VAT correction errors, including e-invoicing violations.

To benefit, taxpayers must be registered, file all overdue returns, and settle their principal tax liabilities. Installment payment plans are available if requested within the initiative period and paid as scheduled.

The initiative does not apply to tax evasion penalties, previously paid fines, or those related to returns due after 30 June 2025.