Saudi Arabia waives tax fines to support businesses

Saudi Arabia has announced a major tax relief initiative, waiving a range of fines and penalties on tax violations to help businesses registered in its tax system.

The Zakat, Tax, and Customs Authority (ZATCA) is urging taxpayers to take advantage of this limited-time exemption, available until June 30, 2025.

What’s covered?

The exemption applies to:
• Late registration, payment, and filing fines across all tax laws.
• Penalties for correcting VAT returns and VAT field control violations.
• Fines related to e-invoicing regulations and other general VAT infractions.

To qualify, taxpayers must be registered with ZATCA, file any outstanding tax returns, and settle all unpaid principal tax debt.

Flexible payment options

Businesses can also apply for a payment installment plan, as long as they submit the request during the initiative period and make timely payments as per ZATCA’s approved schedule.

What’s not covered?

Tax evasion penalties and fines paid before the initiative’s start date are not eligible.

ZATCA has released detailed guidelines on its website, outlining eligibility, application steps, and penalty exemptions. Businesses are encouraged to review these resources and act before the June 2025 deadline.