Saudi Arabia: Extension in the timelines of tax amnesty until 30 June 2025

In brief

On 29 December 2024, the Zakat, Tax and Customs Authority (ZATCA) by adopting the decision of the Minister of Finance, has announced further extension of the fines and financial penalties waiver initiative and made this available for taxpayers who wish to submit a voluntary disclosure through their returns and pay the taxes due.

The announcement, published on the official ZATCA website, can be accessed here.

The types of taxes included in this initiative are Excise Tax, Value Added Tax, Real Estate Transaction Tax, Withholding Tax and Corporate Income Tax. 

This initiative has been extended for an additional six-months period, commencing on 1 January 2025, and concluding on 30 June 2025. This extension follows the tax amnesty program introduced on 1 June 2022, and applies to tax obligations that must be fulfilled prior to the date of the extension.

In detail

ZATCA confirmed that the fines included under this initiative include the following:

• Late registration

• Late payment

• Late filing

• Amendment/corrections of the VAT declarations 

• Other financial fines imposed under Article 45 of the VAT Law and examples include violations of the VAT field detection and E-invoicing

In order to benefit from the initiative, taxpayers must:

• Apply for registration (where required) and discharge their prescribed obligations as per the respective tax legislation

• Submit the outstanding tax returns

• Pay all outstanding tax dues or submit a request for an installment plan, which needs to be approved by ZATCA

It is important to note that the initiative does not cover penalties for tax evasion violations paid before the effective date.

A simplified guide has also been issued by ZATCA explaining the types of fines/penalties that will be covered with illustrative examples which can be accessed through the following links:

• Arabic Version

• English Version