Saudi Arabia: ZATCA further extends the Tax Amnesty deadline to 30 June 2024

In brief

The Zakat, Tax and Customs Authority (ZATCA) announced a further extension to the deadline of the Tax Amnesty Initiative to 30 June 2024 (view here).

According to ZATCA, the latest extension to the Tax Amnesty deadline, which was initially set on 31 December 2023, was aimed to help taxpayers who meet the requirements benefit from the Tax Amnesty to alleviate the impact of the Covid-19 pandemic.

Under the Tax Amnesty Initiative, taxpayers, provided they meet certain conditions, will be exempted from fines relating to late registration, late payment and late filing of returns, fines imposed on voluntary disclosures for correcting VAT returns, as well as fines for violations of VAT field control, including those related to e-invoicing regulations.


In detail

The Tax Amnesty will continue to apply to and relieve taxpayers from the following penalties and fines in relation to all tax legislation (VAT, Income & Withholding Tax, RETT and Excise Tax):

  • Late registration for all tax types
  • Late payment of taxes associated with tax returns due before 1 January 2024
  • Late filing of tax returns due before 1 January 2024
  • Fines imposed as a result of voluntary disclosures submitted to correct VAT returns due before 1 January 2024
  • Fines imposed in relation to VAT field violations, including e-invoicing violations, committed before 1 January 2024

Taxpayers wishing to benefit from the Tax Amnesty during this latest extension period must meet certain conditions including:

  • To submit all unfiled tax returns that were required to be submitted to ZATCA, or to otherwise declare all taxes owed that were not previously declared during the extended period ending 30 June 2024.
  • To pay in full, during the extended period ending 30 June 2024, outstanding principal tax debt or to otherwise agree on a repayment schedule with ZATCA provided that payments are made according to the agreed schedule without defaults.
  • For penalties related to failure to register, in addition to the above conditions, to comply with all applicable registration requirements by 30 June 2024.

It is essential to note that the Tax Amnesty does not cover penalties related to tax evasion violations and fines paid before 1 June 2022.

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To speak with us in relation to any of the proposed changes to KSA tax law, or any tax matters or issues more generally, please contact one of the team members.

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* Content prepared by Legal Advisors in association with Baker & McKenzie Limited.

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