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Saudi Arabia waives tax penalties until end-2025 in extended relief push

Saudi Arabia has extended its tax penalty waiver initiative until December 2025, covering a wide range of tax law violations.

TAS News Service

info@thearabianstories.com

Sunday, June 29, 2025

RIYADH: The decision covers a wide range of violations under current tax laws, including VAT-related infractions, offering eligible taxpayers a renewed opportunity to regularize their status without facing fines.

The Zakat, Tax and Customs Authority (ZTCA) announced that the extended grace period will apply to all tax laws currently in force. This includes penalties associated with correcting value-added tax (VAT) returns, violations related to electronic invoicing, and other VAT compliance issues.

To benefit from the initiative, taxpayers must meet several key conditions: they must be registered with the ZTCA, submit all pending tax returns, fully disclose outstanding liabilities, and settle the principal amount due. In addition, taxpayers can request installment plans within the initiative’s timeframe, as long as payments follow the approved schedule.

However, the ZTCA clarified that the waiver does not cover penalties paid before the initiative’s original launch or fines resulting from tax evasion. Furthermore, any violations arising after June 30, 2025, will not be eligible for exemption.

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