Saudi Arabia: Penalty waiver relaunched for all taxes, including VAT and excise tax

Penalty waiver relaunched for all taxes to mitigate the effect of coronavirus

Penalty waiver relaunched for all taxes to mitigate the effect of coronavirus

The Zakat, Tax and Customs Authority (ZATCA)—as part of its efforts to mitigate the effect of the coronavirus (COVID-19) pandemic—announced the relaunch of the amnesty initiative that waives penalties on all taxes, including income tax, withholding tax, value added tax (VAT), excise tax and real estate transaction tax, for six months from 1 June 2022 until 30 November 2022.

The initiative includes all penalties pertaining to late registration with ZATCA for all taxes, late payment of all taxes, late filing of returns, and field penalties related to e-invoicing. In order to benefit from the initiative, the taxpayer must report and pay the principal amount of tax.

However, fines for tax evasion and fines paid before the launch of the initiative will not be covered.

The initiative allows taxpayers to apply for an installment plan, which will be subject to certain conditions and formal approval of ZATCA.


For more information, contact a KPMG tax professional:

Philippe Stephanny | philippestephanny@kpmg.com

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.