Based on Ministerial Resolution No. (1425) dated Dhu al-Hijjah 25, 1444 AH, the initiative to exempt from fines and financial penalties for taxpayers was extended for a period of seven calendar months, starting from June 1, 2023 AD until December 31, 2023 AD, as follows:
First: Exemption from fines for late registration, whether the registration is from ZATCA or the taxpayer.
Second: Exemption from fines for late payment and late submission of the tax return in all tax laws. As well as correction fines for value-added tax, provided that the principal due tax debt is paid before June 1, 2023.
Third: The unpaid financial fines stipulated in Article Forty-Five of the Value Added Tax System, which were imposed before June 1, 2023, are exempted, and they are as follows:
1- Whoever does not commit to keeping tax invoices, books, records and accounting documents
2- Preventing or obstructing ZATCA’s employees from performing their job duties.
3- Whoever violates any other provision of the law or regulation.
On the condition that all tax returns are submitted before June 1, 2023 AD and the full principal of the tax debt due is paid, or a request is submitted to pay it in installments for the period from June 1, 2022 until December 31, 2023 AD; With the taxpayer’s commitment to the installment plan.
Fourth: Exemption from late payment fines associated with paying the tax included in the installment plan, which is due before the end of the initiative. In the event that the taxpayer does not adhere to the installment plan during or after the end of the initiative period, a late payment fine associated with the original unpaid tax will be imposed.
Fifth: Fines for tax evasion are not exempted in all cases.
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