Saudi Arabia extends tax penalty waiver initiative until end of 2025

The Saudi Zakat, Tax, and Customs Authority (ZTCA) announced that the minister of finance has approved extension of the initiative to waive fines and exempt taxpayers from penalties for a period of six months, starting July 1, 2025. This extension applies to taxpayers until December 31, 2025 under all Saudi tax laws.

The authority said that the initiative offers relief from penalties associated with late registration, late payment, and late filing of returns. It also waives fines for correcting value-added tax (VAT) returns, fines for field violations related to electronic-invoicing regulations, and general VAT-related infractions.

The eligibility requirements stipulate that taxpayers must meet registration requirements as outlined by the authority. They



must also submit all required returns to the authority that have not been previously submitted, correctly disclose all undisclosed taxes, and fully pay the principal tax debt related to the returns to be submitted or amended to correctly disclose outstanding tax liabilities.

Taxpayers may also submit a request to the authority for installment payments, provided the request is submitted during the initiative's validity period and all installments shall be paid within their due dates according to the installment plan approved by the authority.

The ZTAC emphasized that the initiative does not cover penalties for tax evasion violations, fines paid before the effective date of this initiative, or fines related to returns owed to the authority after June 30, 2025.