Saudi Arabia: Penalty waiver extended for late-filed tax returns, late tax payments (COVID-19)

Saudi Arabia: Penalty waiver extended

The Minister of Finance issued Ministerial Resolution no. 2303 (21 January 2021) to extend the waiver of penalties for all late tax return filings and late tax payments until June 2021—part of the effort to mitigate the impact of the coronavirus (COVID-19) pandemic on economic activities.


The resolution outlines new tax penalty-waiver rates. In general, penalties will be waived at different percentage rates based on the timing of payment of the tax liability owed to the General Authority of Zakat and Tax (GAZT).

New tax penalty-waiver mechanism

The relief is applicable to penalties arising from late filing of tax returns and late payment of taxes that were due before 21 January 2021. Penalties arising from assessments or reassessments of returns and payments may also be part of this initiative.

The relief is limited to tax penalties for the late payment, late filing, and value added tax (VAT) declaration amendments. To benefit from this penalty relief, taxpayers must pay the tax liability in full.

The percentage of tax penalty waived is directly linked to the date when payment of the tax liability is made (as noted in the following table):

Payment date

Percentage of penalty waiver

Payment in full before 21 January 2021


Payment made between January and end of March 2021


Payment made between April and end of May 2021


Payment made by June 2021


Exclusions from amnesty

The resolution clarifies that the tax penalty waiver does not include a waiver of penalties incurred due to tax evasion.

The penalty relief also does not apply to penalties other than those mentioned in the resolution. Tax penalties that have been paid to GAZT before the release of this resolution are not subject to this relief initiative.

For more information, contact a KPMG tax professional:

Philippe Stephanny | +1 202 533 3082 |

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