Saudi Arabia: Penalty waiver for taxes, including VAT and excise tax, extended through June 2025

Amnesty initiative that waives fines and penalties relating to corporate income tax, withholding tax, VAT, excise tax, and real estate transaction tax

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January 14, 2025

The Zakat, Tax and Customs Authority of Saudi Arabia (ZATCA) on December 29, 2024, announced the extension until June 30, 2025, of the amnesty initiative that waives fines and penalties relating to corporate income tax, withholding tax, value added tax (VAT), excise tax, and real estate transaction tax.

The initiative had previously been extended until December 31, 2024. Read TaxNewsFlash

The amnesty initiative applies to fines related to:

  • Late registration under all tax laws and regulations
  • Delayed payment
  • Late filing of tax returns
  • Amendments in VAT returns
  • Violation of VAT field detections
  • Violation of electronic invoicing (e-invoicing) regulations

The amnesty initiative excludes the following fines:

  • Fines paid before the effective date of the initial amnesty initiative on June 1, 2022
  • Tax evasion fines
  • Fines associated with returns due after January 1, 2025

Mandatory requirements

To benefit from this tax amnesty, taxpayers must:

  • Register with ZATCA
  • Submit outstanding returns along with payment of tax liability due or application for an installment plan

For more information, contact a KPMG tax professional:

Philippe Stephanny | philippestephanny@kpmg.com

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