On 1 January 2025, Saudi Arabia extended ZATCA’s initiative to cancel penalties for taxpayers until June 2026. Eligible taxpayers must submit returns and pay dues, excluding evasion penalties and those already paid.
Saudi Arabia Extends Tax Penalty Waiver to June 2026
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Author: Ema Stamenković
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Content accuracy validation date:
21.01.2026
Content accuracy validation time:
08:30h
On 1 January 2025, Saudi Arabia’s Minister of Finance approved a six-month extension of ZATCA’s Initiative to Cancel Fines and Exempt Taxpayers from Financial Penalties. The extension applies to all tax systems and runs from 1 January 2026 to the end of June 2026.
The initiative exempts eligible taxpayers from:
- Penalties for late registration under all tax systems,
- Late payment penalties,
- Late filing of returns penalties,
- VAT return adjustment penalties,
penalties for field inspection violations related to electronic invoicing and other general VAT provisions.
To qualify, taxpayers must:
- Be registered in the tax system,
- Submit all required returns,
- Pay the full principal tax amount due on those returns.
Taxpayers may apply for instalment arrangements during the initiative period, provided all instalments are paid on time per the approved plan.
Excluded from the initiative are:
- Penalties related to tax evasion violations,
- Penalties already paid before the initiative’s effective date.
ZATCA recommends reviewing the simplified guidance manual on its website (zatca.gov.sa) for full details, including covered penalty types, exemption conditions, instalment steps, and examples of field inspection violations.
Taxpayers are encouraged to benefit from the extension before it ends in June 2026. For enquiries, contact ZATCA via:
- Unified call centre: 19993 (24/7),
- X account: @zatca_care (“ask zakat, tax and customs”),
- Email: info@zatca.gov.sa,
- Live chat on zatca.gov.sa.
The ZATCA guide of December 2025 (in Arabic): https://zatca.gov.sa/ar/HelpCenter/guidelines/Documents/VAT_PAYMENT_FOR_SPECIAL_PEOPLE.pdf
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