According to the Saudi Zakat, Tax and Customs Authority (ZATCA), the finance minister has confirmed the extension of the project to exempt all taxpayers from fines and financial penalties under the different tax systems for an additional six months, effective on January 1, 2026.
This ruling came following the six-month time in which the waiver of paying the tax penalty expired on December 31, 2025. According to ZATCA, the initiative waives the payment of fines on late registration, late payments, and late filing of returns in all the tax systems.
It also covers fines to rectify VAT returns, penalties to breach of law found during field inspection in regard to electronic invoicing laws, and other general VAT provisions.
The authority identified the required criteria that taxpayers must meet to avail themselves of the waiver initiative. Based on these conditions, the taxpayers have to be enrolled in the tax system, submit all the necessary tax returns to the authority, and pay the overall principal amount of their unpaid tax liabilities.
ZATCA may grant an installment plan to taxpayers, provided that the application is submitted during the validity of the initiative and all installments are paid on their respective due dates to comply with the approved plan of the authority.
The authority emphasized that the initiative does not include penalties related to breaches of tax evasion and any penalties paid before the effective date of the initiative.
ZATCA urged taxpayers to look into the details of the initiative through its simplified guide, which can be found on its site.
This guide contains an extensive summary of the key points of the decision to extend the waiver of fines and penalties, including the nature of fines to be subject to, the terms of exemption, and how to pay outstanding balances in installments.
Therefore, it also outlines the field enforcement violations covered in the initiative, with examples. ZATCA encouraged all taxpayers to seize the opportunity to extend the initiative, which will expire on June 30, 2026.
