Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) has extended its “Cancellation of Fines and Exemption from Financial Penalties” initiative through Dec. 31, 2025, offering taxpayers a further window to regularise their status and clear liabilities without incurring penalties.
The programme provides exemptions from a range of fines across the tax systems administered by the authority, including penalties for late registration, delayed filing of returns and late payments. It also covers penalties tied to corrections of value-added tax (VAT) returns and certain field inspection violations related to the kingdom’s e-invoicing regime, alongside other general VAT provisions, ZATCA said in guidance on its website. Arabian Business first reported the extension.
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The Zakat, Tax and Customs Authority (ZATCA) is the government agency in Saudi Arabia responsible for the collection of zakat (a form of almsgiving in Islam), taxes, and customs duties. ZATCA plays a crucial role in the Kingdom’s financial system by enforcing tax laws, facilitating trade, and ensuring compliance with relevant regulations.
To qualify, taxpayers must be registered in the relevant tax system, submit all required tax returns and settle the principal tax due on outstanding amounts. ZATCA said taxpayers can also request to pay in instalments, provided the application is made while the initiative is in force and the agreed schedule is adhered to. The authority said the relief does not cover penalties for tax evasion and will not refund fines already paid before the initiative’s effective date.
ZATCA has published a simplified guide explaining the extension, the fines eligible for cancellation, the conditions for benefiting, the steps to arrange instalment plans and examples of field inspection violations that are covered. It directed taxpayers to its customer service channels and online portal for assistance.
