The Zakat, Tax, and Customs Authority (ZATCA) introduced the “Cancellation of Fines and Exemption of Financial Penalties” initiative to alleviate financial challenges caused by Covid-19 and emphasize tax compliance. The initiative covers certain fines and penalties under various tax laws, including Corporate Income Tax, Withholding Tax, Value-added Tax, Excise Tax, and Real Estate Transaction Tax. The coverage period is from June 1, 2022, to December 31, 2024. It includes unpaid fines such as late registration, payment, filing, VAT return amendments, and e-invoicing related fines. However, it does not cover fines paid before June 1, 2022, or fines related to tax evasion. Taxpayers must meet specific conditions to avail the benefits, including applying for registration, filing all outstanding tax returns, and paying all outstanding dues or submitting an approved installment plan. Non-compliance with the installment plan conditions will result in the calculation of all fines due as of the original payment due date.
Source Fintedu
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