Saudi Arabia extends tax fine cancellation and penalty exemption scheme until December 2025

The initiative provides exemptions from fines related to late registration across all tax systems, late payments, delayed filing of returns, VAT return correction penalties, and field inspection violations linked to e-invoicing regulations, in addition to other general VAT provisions.

To benefit, taxpayers must be registered in the tax system, submit all required returns, and pay the full principal tax due on outstanding amounts.

Saudi tax fine waiver

ZATCA said taxpayers may also request an instalment plan, provided applications are made during the initiative’s validity period and payments are made on time under the approved schedule.

The authority clarified that the scheme does not cover penalties for tax evasion or fines already paid before its effective date.

ZATCA has published a simplified guideline on its website explaining the extension, the fines covered, eligibility conditions, steps for paying in instalments, and field inspection violations included, with illustrative examples.

Taxpayers are encouraged to make use of the initiative within the specified timeframe and can contact the authority for further assistance via: