Saudi Arabia Extends Tax Amnesty Initiative Until December 31, 2025

Saudi Arabia's Zakat, Tax and Customs Authority (ZATCA) has extended its tax amnesty initiative, offering relief to eligible taxpayers and canceling fines and exemptions from penalties until December 31, 2025. The initiative covers various taxes, including corporate income tax, withholding tax, value-added tax, excise tax, and real estate transaction tax. Taxpayers must meet specific conditions, such as fulfilling registration requirements, submitting outstanding tax returns, and settling the principal tax amounts in full, to benefit from the amnesty.

Key Takeaways:

• The tax amnesty initiative has been extended until December 31, 2025, initially set to expire on June 30, 2025.
• Eligible taxpayers can cancel fines and exemptions from penalties related to corporate income tax, withholding tax, value-added tax, excise tax, and real estate transaction tax.
• The amnesty covers fines for late registration, late payment, delayed filing of returns, errors in VAT return corrections, and violations of VAT field control, including non-compliance with e-invoicing and other VAT regulations.
• To benefit from the amnesty, taxpayers must fulfill registration requirements, submit outstanding tax returns, and settle the principal tax amounts in full.
• Installment plans are available for taxpayers who submit applications within the initiative period and make payments according to the approved schedule.
• The amnesty does not apply to fines for tax evasion, penalties paid before the initiative's effective date, or those relating to returns due after June 30, 2025.

Statistics:

• The tax amnesty initiative has been extended by 18 months, from June 30, 2025, to December 31, 2025.
• The initiative covers penalties related to five types of taxes: corporate income tax, withholding tax, value-added tax, excise tax, and real estate transaction tax.
• Eligible taxpayers can benefit from the exemption of fines and exemptions from penalties, with a total value of unknown amounts.

Sources:

• Zakat, Tax and Customs Authority (ZATCA), Riyadh, Saudi Arabia
• Published by HT Digital Content Services with permission from Siasat Daily