The General Authority for Zakat and Tax (GAZT) has extended its waiver of penalties for all tax filing and payment for a further three months as part of its efforts to mitigate the impact of the COVID-19 pandemic on the economic activities of the Kingdom. GAZT announced, through a notification on its website, that the waiver will be extended until 30 September 2020. This is an extension of the IFSAH initiative’s waiver of penalties for Zakat, Income Tax, Withholding Tax, VAT, and Excise Tax, which ran from 18 March 2020 until 30 June 2020.

The extension includes a waiver of penalties for taxpayers who need to submit or amend their tax declarations on condition that they pay their pending dues and submit or amend their documents by 30 September 2020. Penalties will also be waived in case of late registration to the GAZT system if the taxpayer registers, submits, and pays all dues by the new deadline.

GAZT also announced that the taxpayers can request approval of installment plans in case taxpayers are unable to pay their dues by 30 September 2020. Penalties will be waived for past dues until 30 September 2020 but will resume on 1 October 2020.

Please refer to our previous tax alerts on the subject through the links provided below. Our teams are available in case you need any clarification or further assistance.

March 2020 – Postponement of Tax Filing and Obligations for Three Months

April 2020 – Measures to Support Taxpayers During the Covid-19 Pandemic

Riyadh Office

Jeddah Office

Khobar Office