Saudi Tax Penalty Relief Initiative Extended Until End of 2026
The extension covers penalties for late registration, payment and tax return filings until December 31st.
Saudi Arabia's Cancellation of Fines and Exemption of Financial Penalties Initiative has been extended until December 31st, 2026, following approval by the Minister of Finance. The extension takes effect from July 1st and applies to taxpayers subject to all tax laws.
According to the Zakat, Tax and Customs Authority, the initiative exempts eligible taxpayers from fines related to late registration, late payment, late filing of tax returns and penalties for correcting value added tax returns.
To qualify, taxpayers must be registered with the authority, submit all outstanding tax returns and pay the full principal amount of any outstanding tax liabilities. Taxpayers may also apply for an instalment plan during the initiative's validity period, provided the request is submitted before the initiative expires and all approved instalments are paid on schedule.
The initiative does not cover penalties related to tax evasion, fines imposed under Article 45 of the Value Added Tax Law, penalties already paid before the initiative came into effect, or fines linked to tax returns due after June 30th, 2026.
