Saudi Arabia extends tax fine waiver program

The Zakat, Tax and Customs Authority (ZATCA) Saudi Arabia has confirmed that the Ministry of Finance has approved a six-month extension of the tax fine waiver initiative. The renewed program will take effect on July 1, 2026, and remain valid until December 31, 2026.

The move is to provide eligible taxpayers with additional time to resolve outstanding tax obligations without incurring certain financial penalties.

Under the extended initiative, taxpayers may receive exemptions from penalties related to late tax registration, delayed tax payments, late submission of tax returns across all applicable tax systems, and corrections made to Value Added Tax (VAT) returns.

To qualify for the relief, taxpayers must be registered with ZATCA, submit all outstanding tax returns, and pay the full amount of any unpaid principal tax. Those who cannot settle the amount in one payment may request an installment plan during the initiative period. Approval is subject to ZATCA’s conditions, and all scheduled payments must be made on time.

However, the authority clarified that the initiative does not apply to penalties resulting from tax evasion, fines issued under Article 45 of the VAT Law, penalties that were paid before the initiative began, or fines linked to tax returns with due dates after June 30, 2026.

Saudi Arabia’s ZATCA also noted that even if the initiative is extended again after December 31, 2026, penalties associated with tax returns due after June 30, 2026, will continue to be excluded from the exemption.

To help taxpayers understand the program, ZATCA has published a simplified guide outlining the covered penalties, eligibility requirements, payment installment procedures, and practical examples. Eligible taxpayers are encouraged to complete the necessary requirements before the initiative expires at the end of December 2026.

For additional assistance, taxpayers can contact ZATCA through its 24/7 unified call center, live chat service, email support, or the authority’s official customer support account on the X platform.