The Zakat, Tax and Customs Authority (ZATCA) has extended the Cancellation of Fines and Exemption of Penalties Initiative until June 30, 2025. This initiative allows taxpayers to avoid penalties related to various tax violations, including late registration, late payment, late filing of returns, VAT corrections, and e-invoicing violations. Key conditions for eligibility include:

• Taxpayer registration in the tax system.
• Submission of all outstanding tax returns to ZATCA.
• Payment of outstanding tax debt or setting up an installment plan within the initiative period.
• Exclusions apply to tax evasion penalties and fines paid before the initiative started.

ZATCA has made a simplified guideline available on its website for further details. Taxpayers can contact ZATCA for inquiries via their call center, X (Twitter) account, email, or live chat on the official website.

Key Concepts

1. Initiative Duration: Extended until June 30, 2025.
2. Covered Penalties: Includes late registration, late payment, late return filing, VAT correction, and e-invoicing violations.
3. Eligibility Conditions: Taxpayers must be registered, submit outstanding returns, and pay due tax amounts.
4. Installment Plans: Allowed if requested during the initiative period and all installments are paid on time.
5. Exclusions: Tax evasion fines and previously paid penalties are not covered.
6. Guideline Availability: A detailed simplified guide is available on ZATCA’s website.
7. Support Channels: Taxpayers can contact ZATCA via phone, social media, email, or live chat.

1️⃣ Does the Initiative Cover All Types of Taxes?

✅ The initiative applies to multiple tax types, including:

• Value Added Tax (VAT)
• Withholding Tax (WHT)
• Excise Tax
• Corporate Income Tax
• Zakat

However, the specific conditions may vary depending on the tax type. Taxpayers should consult ZATCA for further clarification.

2️⃣ What If I Have Already Paid a Fine Before the Initiative Started?

❌ Fines that were paid before the initiative began are non-refundable.

• The initiative only waives unpaid fines that meet the criteria.

3️⃣ What If I Have a Tax Dispute or Appeal in Progress?

If a taxpayer has an ongoing dispute or appeal, they should consider:
✔ Settling the principal tax debt before the deadline to benefit from the fine exemption.
✔ Contacting ZATCA to check whether the initiative applies to their case.

4️⃣ Will I Still Be Audited If I Benefit from the Initiative?

✅ Yes, tax audits can still happen.

• Taking advantage of the initiative does not exempt businesses from future tax audits.
• If errors, underreporting, or fraud are discovered later, additional fines or tax assessments may be applied.

5️⃣ Can New Businesses That Recently Registered Benefit?

✔ Yes, but only if they have:

1. Previously missed tax registration deadlines and received late registration fines.
2. Late tax returns or unpaid tax balances that qualify under the initiative.

If a business is fully compliant, there’s no benefit to claim under this initiative.

6️⃣ What If I Miss the June 30, 2025, Deadline?

❌ After June 30, 2025, all waived penalties will become payable again.

• Interest and late payment fines will resume.
• ZATCA may take enforcement actions like bank account freezes, asset seizures, or other penalties.

📌 Best Advice: Act early to avoid last-minute issues!

7️⃣ What If I Can’t Pay the Full Amount Before the Deadline?

✔ Installment Plans Are Available!

• Taxpayers must apply for an installment plan before June 30, 2025.
• Payments must be completed according to ZATCA’s approved schedule.
• If an installment payment is missed, the exemption may be revoked.

8️⃣ How Do I Apply for an Installment Plan?

📌 Steps to request an installment plan:
1️⃣ Log in to ZATCA’s online portal (zatca.gov.sa).
2️⃣ Go to the “Installment Plan Request” section.
3️⃣ Submit the application with details of the outstanding tax amount.
4️⃣ ZATCA will review and approve based on eligibility.

9️⃣ How Do I Check My Outstanding Fines or Tax Amounts?

✔ Taxpayers can log into ZATCA’s online portal to view:

• Pending tax returns
• Outstanding tax debts
• Any applicable penalties

📌 Tip: Check your tax status before the deadline to avoid surprises.

🔹 Final Recommendations

✔ Check your tax compliance status ASAP.
✔ File all missing returns before June 30, 2025.
✔ Pay outstanding taxes or request an installment plan.
✔ Contact ZATCA for any clarifications.

1. Who is eligible for the exemption?

• Any taxpayer registered in the tax system and who submits all unfiled returns and pays due taxes.

2. What types of fines are included?

• Late registration fines
• Late payment fines
• Late filing of returns fines
• Fines for correcting VAT returns
• Fines for VAT field control violations (including e-invoicing)

3. Are there any penalties that are not covered?

• Yes, tax evasion penalties and fines paid before the initiative started are not included.

4. Can taxpayers pay in installments?

• Yes, taxpayers can request an installment plan as long as:
  • The application is submitted while the initiative is active.
  • All installment payments are made by the agreed due dates.

Certainly! Here’s a detailed breakdown of the Cancellation of Fines and Exemption of Penalties Initiative by ZATCA:

🔹 Overview of the Initiative

The Zakat, Tax, and Customs Authority (ZATCA) has extended its Cancellation of Fines and Exemption of Penalties Initiative until June 30, 2025. This initiative aims to help taxpayers resolve outstanding tax issues by waiving specific penalties, provided they comply with certain conditions.

✅ Objective of the Initiative

• Encourage tax compliance by allowing taxpayers to clear overdue tax filings.
• Reduce the financial burden of penalties related to tax violations.
• Provide an opportunity for businesses to settle their obligations without fines.

📌 Key Conditions for Eligibility

To benefit from the exemption, taxpayers must:

1. Be registered in ZATCA’s tax system.
2. Submit all previously unfiled returns before the initiative ends.
3. Pay all outstanding tax amounts associated with the unfiled returns.
4. Option to request an installment plan, but all payments must be made on time.

🚨 Important:

• Tax evasion fines are not covered.
• Penalties already paid before the initiative started cannot be refunded.

🔹 Types of Fines Covered by the Exemption

The initiative waives the following penalties:

1️⃣ Late Registration Penalties

• For businesses that did not register on time under Saudi tax laws.

2️⃣ Late Payment Penalties

• Fines for delays in tax payment after the due date.

3️⃣ Late Filing of Returns Penalties

• If a taxpayer fails to submit tax returns on time, fines are imposed.
• The initiative removes these penalties if returns are filed now.

4️⃣ VAT Correction Fines

• If a business made errors in VAT returns, they could be fined.
• Under this initiative, correction fines are waived if businesses amend their filings.

5️⃣ VAT Field Control Violations

• Non-compliance with e-invoicing rules and other VAT regulations.
• Fines related to field audits are also included.

❌ Excluded Fines:

• Tax evasion penalties.
• Fines paid before the initiative started.

🔹 How to Benefit from the Initiative?

To take advantage of the fine exemption, taxpayers must follow these steps:

📍 Step 1: Register in the ZATCA System

• If not already registered, businesses must complete official tax registration.

📍 Step 2: Submit All Unfiled Returns

• Taxpayers should submit all outstanding tax returns for any previous tax periods.

📍 Step 3: Pay the Due Tax Amount

• All principal tax debts must be settled.

📍 Step 4: Apply for an Installment Plan (If Needed)

• If taxpayers cannot pay in full, they may request an installment plan.
• The application must be submitted during the initiative period.
• All installments must be paid on time for the exemption to remain valid.

🔹 Frequently Asked Questions (FAQs) with Detailed Answers

Q1: Who is eligible for the fine exemption?

✅ Any taxpayer registered with ZATCA who meets the requirements of filing overdue returns and paying outstanding tax debts before June 30, 2025.

Q2: What happens if I don’t pay my taxes during this initiative?

❌ If taxpayers do not take action within the deadline, penalties will still apply, and enforcement actions may be taken against them.

Q3: Are businesses required to pay interest on overdue taxes?

💡 No interest will be charged on the waived fines, but the principal tax amount still needs to be paid.

Q4: Can I apply for an installment plan, and how does it work?

✔ Yes, businesses can request an installment plan. However:

• The request must be made before June 30, 2025.
• All installment payments must be completed on time according to ZATCA’s approved schedule.

Q5: Where can I find more details or get assistance?

📌 Taxpayers can contact ZATCA through the following channels:
📞 Call Center: 19993 (Available 24/7)
🐦 X (Twitter): @Zatca_Care
📧 Email: info@zatca.gov.sa
💬 Live Chat: zatca.gov.sa

🔹 Why Should Taxpayers Act Now?

🔹 Save Money: Avoid significant penalties for late tax compliance.
🔹 Protect Business Operations: Prevent future legal actions for unpaid tax obligations.
🔹 Flexible Payment Options: Set up an installment plan to ease financial burdens.
🔹 Limited-Time Offer: Deadline is June 30, 2025, so early compliance is beneficial

This initiative is an opportunity for businesses and individuals to clear their tax obligations without penalties. By registering, filing past returns, and paying due taxes, taxpayers can benefit from the exemption and avoid financial and legal consequences.