ZATCA Extends Fine Cancellation And Penalty Exemption Initiative Until End Of 2024

The Zakat, Tax and Customs Authority (ZATCA) has announced an extension for the Cancellation of Fines and Exemption of Financial Penalties Initiative. This extension, approved by the Minister of Finance, will last for six months until 31 December 2024. The initiative aims to support taxpayers affected by the COVID-19 pandemic.

To benefit from this initiative, taxpayers must be registered under the tax law and submit all previously unsubmitted returns to ZATCA. They are also required to pay all principal tax debts associated with these returns or modify them to disclose any outstanding tax liabilities accurately. Additionally, taxpayers can request an installment payment plan from ZATCA if they apply while the initiative is still active.

ZATCA has clarified that the fines covered by this exemption include those for late registration under all tax laws, late payment, late filing of returns, and corrections to VAT returns. It also covers fines related to field control violations concerning e-invoicing regulations and other general VAT provisions. However, penalties related to tax evasion violations and fines paid before the initiative's effective date are excluded.

The authority has provided a simplified guideline on its website detailing the initiative's key aspects. This includes explanations of the types of penalties included in the decision, conditions for benefiting from exempt fines, steps for installment financial dues, and information on field control violations.

ZATCA encourages all eligible taxpayers to take advantage of this initiative within the given timeframe. The authority has made it clear that applications for installment plans must be submitted while the initiative is in effect and that all due installments should be paid by their specified dates as per the Authority-approved plan.

For any inquiries or further information about the initiative, taxpayers can contact ZATCA through various channels. These include a 24/7 unified call center number (19993), X Account (@Zatca_Care), email ([email protected]), or instant messaging via ZATCA's website (zatca.gov.sa).

This extension reflects ZATCA's commitment to mitigating the economic impact on businesses due to the COVID-19 pandemic. By providing this relief, ZATCA aims to help taxpayers meet their obligations more comfortably during these challenging times.

With inputs from SPA