Saudi Arabia: Penalty waiver for taxes, including VAT and excise tax, extended through December 2023
The initiative had expired on 31 May 2023.
The initiative had expired on 31 May 2023.
The Zakat, Tax and Customs Authority of Saudi Arabia (ZATCA) has extended amnesty initiative that waives the fines and penalties relating to corporate income tax, withholding tax, value added tax (VAT), excise tax, and real estate transaction tax.
The initiative, which expired on 31 May 2023, is extended from 1 June 2023 until 31 December 2023.
Fines to which the amnesty initiative applies:
- Late registration fines
- Payment delay fines and fines related to delay in filing tax returns
- VAT returns amendment fines
- VAT field detection and electronic invoicing (e-invoicing) violations fines
| KPMG observation: The incentives are applicable for the amendments of any tax returns, either made by the taxpayer under the tax amnesty initiative or by ZATCA through assessments or reassessments. |
The amnesty initiative excludes the following fines:
- Fines paid before the effective date of the initial amnesty initiative on 1 June 2022
- Tax evasion fines
- Fines associated with returns due after 1 June 2023
Mandatory requirements
To benefit from this tax amnesty, taxpayers must:
- Register the business with ZATCA for the applicable taxes
- Submit outstanding returns along with payment of tax liability due or application for an installment plan
| KPMG observation: Taxpayers have the right to make payment of taxes due in installments according to an installment plan approved by ZATCA, and the taxpayers will benefit from a waiver of late payment penalties for the installments due after the end of December 2023. |
For more information, contact a KPMG tax professional:
Philippe Stephanny | philippestephanny@kpmg.com
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