The Saudi “Zakat and Tax” exempts its taxpayers from fines and financial penalties

The Zakat Tax and Customs Authority in Saudi Arabia has announced the relaunch of the initiative for the abolition of fines and exemption from fines for all taxpayers subject to all tax regimes, for a period of 6 months, starting today, Wednesday 1 June, 2022 AD, until 30 November 2022 AD, with the aim of mitigating the economic effects of the factories following the Corona pandemic.

The authority added in a note, which the fines included in the exemption decision, a penalty for late registration in all tax systems, a penalty for late payment, a penalty for late submission of the return in all tax systems, a penalty for rectification of the declaration for value added tax, as well as penalties for violations of field control relating to the application of the provisions of the law provisions Electronic invoicing and other general provisions for VAT.

The authority explained that to benefit from the exemption from sanctions initiative, it is required to register with the tax system in which was required to register for non-registered who had to register in precedence, and to submit all the declarations to be presented to the authority that have not been previously presented, with the correct information of all the taxes not correctly declared, and to pay the entire capital of the tax debt relating to the declarations that will be presented or modified to correctly expose the tax obligations due, with the possibility of submitting a request for installments to the Authority, provided that the application is presented, studied and approved by the Authority during the validity of the initiative, and that the payment of all the rate due During the deadlines for the second installment plan approved by the Authority.

The Zakat Revenue and Customs Agency invited taxpayers to view the details of the initiative and its texts, through the simplified guideline of the initiative available on its website webwhich includes a detailed explanation of the most relevant issues covered by the decision to exempt from sanctions, including clarification of the types of sanctions subject to and the conditions for benefiting from them From the exemption associated with each type of sanction, and the phases for the installment of the financial quotas , as well as the definition of the violations of the control on the field covered by the initiative, with illustrative examples.

The Authority confirmed that the initiative does not include the penalties relating to violations of tax evasion, the penalties that were paid before the date of entry in vigor of tale initiative and penalties for late payment relating to the origin of the tax included in an installment payment that must be paid after the end of the period foreseen for the initiative scheduled for 30 November 2022 AD

The Authority has urged all the persons in charge to make use of the initiative in the period envisaged, which ends at the end of November of quest’year, and at the same time has called to communicate with it whenever there are checks on the initiative.

The initiative for the abolition of financial penalties and exemption from financial penalties is an extension of the previous authority’s initiatives launched with the aim of mitigating the economic and financial effects deriving from the Corona pandemic and its repercussions.

Interestingly, at the beginning of quest’year the Authority reclassified the violations and penalties for value added tax relating to the field violations that derive from the taxpayer’s failure to comply with their tax duties and obligations, in so that all penalties for field violations begin with warning in structure first, by educating the taxpayer and not by imposing financial penalties when the violation is committed for the first time.

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