Saudi Arabia Extends Tax Amnesty Initiative to End of 2024

Saudi Arabia has further extended its tax amnesty initiative, Cancellation of Fines and Exemption of Financial Penalties, to the end of 2024. This extension, announced by the Ministry of Finance on 30 June 2024 via Resolution No.1352, continues from the previous extension, which was set to expire on 30 June 2024.

BACKGROUND

Initially introduced in March 2020 to alleviate the impact of the COVID-19 pandemic, the tax amnesty initiative aims to provide relief to taxpayers by exempting them from various fines and penalties. The initiative has undergone multiple extensions, with the most recent spanning from 1 January 2024 to 30 June 2024.

KEY DETAILS OF THE EXTENSION

• Effective Period: The initiative now extends from 1 July 2024 to 31 December 2024.
• Applicable Fines: The amnesty covers fines for late registration, delayed payments, overdue tax return submissions, VAT return correction penalties, and violations related to VAT field detection and e-invoicing under Article 45 of the VAT Law.
• Conditions for Exemption:
  • Taxpayers must be registered with the Zakat, Tax, and Customs Authority (ZATCA).
  • All pending or incorrect tax returns must be filed, and the principal amount must be paid, or installment plans must be arranged.
  • Exemptions do not apply to fines resulting from tax evasion violations.

SOURCES/ RECOMMENDED READ:

• Exemption_of_Fines_Initiative_Simplified_EN.pdf (zatca.gov.sa)
• Saudi Arabia further extends tax amnesty initiative until 31 December 2024 | EY - Global