The Zakat, Tax, and Customs Authority (ZATCA) is issuing a final reminder to all taxpayers under its jurisdiction: the "Cancellation of Fines and Exemption of Penalties Initiative" will conclude on December 31, 2023. This initiative offers a crucial chance for taxpayers to align with tax compliance standards while benefiting from a significant reduction in fines and penalties.
Covered under this initiative are fines related to various tax compliance issues, including late registration under all tax laws, late payment, and delays in filing returns. Additionally, the initiative includes fines associated with correcting VAT returns and violations concerning VAT field control, particularly those linked to e-invoicing regulations.
Eligibility for the exemption requires taxpayers to be registered in the tax system, submit any overdue returns to ZATCA, and settle all principal tax debts related to these returns. To aid taxpayers in meeting these requirements, ZATCA is offering the option to arrange an instalment payment plan. This plan is available as long as applications are submitted before the end of the initiative, with all instalments paid by their due dates. It is important to note, however, that the initiative does not cover penalties related to tax evasion or fines paid prior to its implementation.
To assist taxpayers in understanding and taking advantage of this initiative, ZATCA has made available a simplified guideline on its website. This resource provides a detailed explanation of the initiative, including eligible penalties, conditions for exemption, and guidance on arranging instalment payments for financial dues and addressing field control violations.
As the December 31 deadline approaches, ZATCA urges all taxpayers to take this final opportunity to regularize their tax affairs. This initiative is not only beneficial for easing financial burdens but also crucial for fostering a culture of compliance and transparency within the tax system.
Taxpayers seeking further information or assistance can reach out through the following channels:
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