The Saudi Zakat, Tax and Customs Authority (ZATCA) has announced a six-month extension for its tax penalty waiver initiative. Consequently, the Minister of Finance approved this decision to support taxpayers across the Kingdom starting from 1 January, 2026, allowing businesses and individuals to settle their dues without the burden of additional financial fines and penalties.
Taxpayers across all systems can now benefit from exemptions on late registration, late payment, and delayed tax return submissions. Furthermore, the initiative covers penalties for correcting VAT returns and violations related to the implementation of electronic invoicing regulations. However, ZATCA clarified that this waiver specifically excludes penalties related to tax evasion or fines paid before the effective date.
Requirements for Exemption
To qualify for this relief, taxpayers must register in the relevant tax system and submit all outstanding tax returns immediately. Additionally, they must pay the full principal amount of any outstanding tax liabilities or apply for an approved installment plan. If you choose an installment plan, you must pay all amounts on their scheduled due dates to maintain eligibility.
ZATCA encourages all taxpayers to review the simplified guide on their official website to understand the specific conditions required. Moreover, you can contact the authority through the 24-hour unified call center at 19993 for any further technical inquiries. This proactive measure reflects the Kingdom’s commitment to fostering a transparent and supportive environment for the national business community.
