The initiative includes exempting taxpayers from penalties related to late registration under all tax systems, late payment, and late filing of tax returns
The Zakat, Tax and Customs Authority (ZATCA) announced the issuance of a decision by the Minister of Finance to extend the implementation of the initiative to cancel fines and exempt taxpayers subject to all tax regulations from financial penalties for a period of six calendar months, effective from January 1, 2026. 
In a statement, ZATCA clarified that the initiative includes exempting taxpayers from penalties related to late registration under all tax systems, late payment, and late filing of tax returns. It also covers penalties for correcting Value Added Tax (VAT) returns, fines resulting from field inspection violations related to the application of electronic invoicing regulations, as well as other general VAT-related provisions.
To benefit from the initiative, taxpayers must be registered in the tax system, submit all tax returns required to be filed with the authority, and fully settle the principal amount of tax due related to outstanding tax returns. Taxpayers may apply to the authority for installment plans, provided that the request is submitted during the initiative’s validity period and that all installments are paid on time in accordance with the installment plan approved by ZATCA. The authority emphasized that the initiative does not include fines related to tax evasion violations, nor fines that were paid prior to the effective date of the initiative.
ZATCA called on taxpayers to review the details through the simplified guidance manual for the initiative, available on its official website. The guide provides a detailed explanation of the key elements of the decision to extend the initiative to cancel fines and exempt taxpayers from financial penalties, including clarification of the types of fines covered, exemption conditions, steps for installment payment of financial dues, and an overview of the field inspection violations included under the initiative, supported by illustrative examples.
The initiative includes exempting taxpayers from penalties related to late registration under all tax systems, late payment, and late filing of tax returns
The Zakat, Tax and Customs Authority (ZATCA) announced the issuance of a decision by the Minister of Finance to extend the implementation of the initiative to cancel fines and exempt taxpayers subject to all tax regulations from financial penalties for a period of six calendar months, effective from January 1, 2026.
In a statement, ZATCA clarified that the initiative includes exempting taxpayers from penalties related to late registration under all tax systems, late payment, and late filing of tax returns. It also covers penalties for correcting Value Added Tax (VAT) returns, fines resulting from field inspection violations related to the application of electronic invoicing regulations, as well as other general VAT-related provisions.
To benefit from the initiative, taxpayers must be registered in the tax system, submit all tax returns required to be filed with the authority, and fully settle the principal amount of tax due related to outstanding tax returns. Taxpayers may apply to the authority for installment plans, provided that the request is submitted during the initiative’s validity period and that all installments are paid on time in accordance with the installment plan approved by ZATCA. The authority emphasized that the initiative does not include fines related to tax evasion violations, nor fines that were paid prior to the effective date of the initiative.
ZATCA called on taxpayers to review the details through the simplified guidance manual for the initiative, available on its official website. The guide provides a detailed explanation of the key elements of the decision to extend the initiative to cancel fines and exempt taxpayers from financial penalties, including clarification of the types of fines covered, exemption conditions, steps for installment payment of financial dues, and an overview of the field inspection violations included under the initiative, supported by illustrative examples.
