Is the ZATCA penalty waiver still available?

ZATCA's most recent official announcement located for this initiative states that the Cancellation of Fines and Exemption of Financial Penalties Initiative was extended until 30 June 2026. That extension covered specified penalties under Saudi tax laws, including certain VAT field violations related to e-invoicing.

That published extension period has now ended, and no subsequent official announcement extending the same initiative beyond 30 June 2026 has been verified. Businesses should therefore not assume that the waiver remains available without checking the latest ZATCA announcements or confirming their eligibility directly with the Authority.

The previous initiative also had conditions, including registration under the relevant tax system, submission of outstanding returns and payment of the principal tax due or an approved instalment arrangement. Some penalties, including those related to tax evasion and penalties already paid before the initiative's effective period, were excluded.

Key points

• The published 2026 extension ended on 30 June 2026.
• No later official extension has been verified.
• Do not assume that the waiver is currently available.
• Previous eligibility conditions included registration and filing outstanding returns.
• Principal tax liabilities had to be paid or covered by an approved instalment plan.
• Tax-evasion penalties and certain previously paid penalties were excluded.
• Check the latest ZATCA announcement before relying on a waiver.