ZATCA outlines conditions for tax penalty exemption initiative

The Zakat, Tax and Customs Authority (ZATCA) has announced the conditions for benefiting from the penalty exemption initiative, which allows taxpayers to correct their tax status and take advantage of exemptions under specific regulations until December 31, 2026.

In a statement on its official X account, the authority said the initiative covers several types of tax penalties, including late registration, late filing of tax returns, late payment, and penalties related to correcting value-added tax (VAT) returns.

Conditions for benefiting from the penalty exemption initiative

ZATCA specified the conditions for benefiting from the initiative according to the type of penalty, as follows:

1- Penalty for late registration under all tax systems:

- Registration in the tax system for those not yet registered.

- Submission of all required tax returns.

- Full payment of the original tax debt or submission of an installment request.

2- Penalties for late submission of tax returns under all tax systems:

- Submission of all required tax returns.

- Full payment of the original tax due for the return covered by the initiative or submission of an installment request.

3- Penalties for late tax payment:

- Full payment of the original tax due for the return covered by the initiative or submission of an installment request.

4- Penalty for correcting VAT returns:

- Payment of the original tax due for the return covered by the initiative or submission of an installment request.

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Deadline for the penalty exemption initiative

The authority emphasized that the initiative is an opportunity for taxpayers to correct their tax status and benefit from the included penalty exemptions, provided all requirements are met before the initiative ends on December 31, 2026.