Saudi Arabia introduces major tax update 2024

In a move demonstrating sensitivity to economic challenges posed by the ongoing pandemic, Saudi Arabia has prolonged its tax fine waiver and penalty exemption program.

Saudi Arabia Extends Tax Fine Waiver

The Zakat, Tax, and Customs Authority (ZATCA) has officially declared the extension of the "Cancellation of Fines and Exemption of Penalties" initiative, offering a lifeline to taxpayers until June 30, 2024.

Motivation Behind Extension

Originally set to conclude on December 31, the extension aims to provide an additional six months for relevant parties in Saudi Arabia to settle taxes without incurring fines and penalties. This compassionate measure reflects the commitment of ZATCA to support individuals and businesses grappling with the repercussions of the COVID-19 pandemic.

Covered Fines and Exemptions

ZATCA has outlined the specific fines covered by the exemption decision, encompassing various aspects of tax laws. These include fines for late registration, late payment, and late filing of returns across all tax laws. Additionally, fines related to correcting VAT returns and violations of VAT field control, including adherence to e-invoicing regulations and general regulations, fall under the umbrella of this initiative.

Conditions for Benefits and Exclusions

To avail of the initiative, taxpayers in Saudi Arabia must be registered under the tax law and submit all previously unsubmitted returns to ZATCA. Clear conditions include paying the principal tax debt associated with the submitted or modified returns disclosing outstanding tax liabilities. Taxpayers can also request an installment payment plan, provided the application is submitted during the initiative's effective period and the installments are paid on schedule. Notably, the initiative excludes penalties for tax evasion violations and fines paid before the initiative's effective date.

Guidance for Taxpayers

ZATCA encourages taxpayers to visit its website and look for the simplified guidelines for more information about the program. Important details, including the fines addressed, exemption requirements, installment payment processes, and insights into field control infractions, are clarified in the guideline.

Engagement Channels for Queries

For inquiries and assistance, ZATCA encourages taxpayers to utilize various communication channels, including telephone services (19993), the official Twitter handle (@Zatca_Care), email ([email protected]), and the online portal (zatca.gov.sa).

As Saudi Arabia extends its supportive measures, taxpayers are encouraged to leverage this opportunity to navigate financial challenges during these unprecedented times.

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