Riyadh, July 25, 2023, In a recent announcement, the Zakat, Tax, and Customs Authority (ZATCA) revealed that the "Cancellation of Fines and Exemption of Penalties" initiative has been extended until December 31, 2023. This move aims to provide individuals and businesses with further relief from fines and penalties, allowing them more time to fulfill their obligations. The extension of the Initiative, scheduled to conclude on May 31, 2023, has been announced with the intention of aiding eligible taxpayers in mitigating the repercussions of the ongoing COVID-19 crisis. In a recent development, the authority has provided further clarification regarding the fines that will be exempt. According to the Zakat and Tax Authority (ZATCA), the fines covered by the exemption decision encompass a range of offenses. These include fines for late registration in all tax systems, late payment, late filing of returns in all tax systems, fines to correct VAT returns, as well as fines for violations of VAT field control pertaining to the implementation of e-invoicing regulations and other general regulations. Under the stipulations of the Initiative, taxpayers were required to be registered with the tax system and diligently submit any previously unsubmitted returns to the appropriate authority in order to avail themselves of its benefits. Taxpayers have the option to settle their outstanding tax liabilities by paying the principal tax debt linked to the returns that will be submitted or modified. Additionally, they have the opportunity to request an installment payment plan from ZATCA to manage their payments effectively. In order to ensure eligibility for the Initiative, it is crucial to submit the application while the program is still active and fulfill all required payments according to the Authority-approved installment plan. It is important to highlight that penalties associated with tax evasion violations and fines paid prior to the Initiative's implementation are not covered under this program. The taxpayers have been extended an invitation by ZATCA to access the comprehensive details of the Initiative. This can be done through the simplified guidelines that are conveniently accessible on the organization's official website. The guideline offers a thorough explanation of the crucial elements of the decision. These include an in-depth overview of the various types of penalties encompassed within the decision, along with a clear elucidation of the conditions required to avail the benefits of exempt fines. Additionally, the guideline outlines the step-by-step process for settling financial dues through installment plans. Furthermore, it introduces violations related to field control. The tax authority has issued a strong call to all taxpayers, urging them to take full advantage of the Initiative within the specified timeframe, which concludes in May 2023. Additionally, it has actively encouraged individuals to reach out with any queries or concerns through various channels. These include the round-the-clock unified call center number (19993), the official Twitter account (@Zatca_Care), the designated e-mail address ([email protected]), as well as instant messaging options available on the ZATCA's official website (zatca.gov.sa). In a move that comes as no surprise, the authorities have decided to cancel the Fines and Exemption of Penalties Initiative. This decision is in line with their previous initiatives aimed at mitigating the economic and financial consequences of the ongoing COVID-19 pandemic.
