Saudi Arabia Extends Amnesty for Tax Evasion Detection

The Zakat, Tax and Customs Authority of Saudi Arabia (ZATCA) has announced an extension to its amnesty initiative that waives fines and penalties related to various taxes. This move aims to encourage taxpayers to rectify their tax compliance issues before the end of the year.

Extension Period: December 31, 2023

The initial amnesty initiative had expired on May 31, 2023, but has been extended until December 31, 2023. This provides an additional opportunity for businesses to benefit from the tax amnesty and avoid significant fines and penalties associated with non-compliance.

Eligible Fines and Penalties

The extended amnesty applies to a range of fines, including:

Late registration fees
Payment delay penalties
VAT returns amendments
Electronic invoicing violations

However, the following are excluded from the amnesty:

Fines paid before June 2022
Tax evasion fines and penalties associated with returns due after June 1, 2023

Benefits of the Tax Amnesty

To benefit from this tax amnesty, taxpayers must:

Register their business with ZATCA for the applicable taxes
Submit outstanding returns along with payment of any tax liability due or application for an installment plan
Make payments in installments, which will waive late payment penalties for amounts due after December 31, 2023

Next Steps

For more information on this development, consult with a tax professional at KPMG or contact ZATCA directly to understand how the tax amnesty can benefit your business.