Tax Penalty Waiver Initiative Extended Until End of 2025
Saudi Arabia’s penalty waiver initiative has been extended six months to 31st of December 2025, wiping late‑registration, late‑payment, and VAT filing fines - provided taxpayers settle owed amounts.
The Zakat, Tax and Customs Authority (ZTCA) has officially extended its tax penalty waiver initiative through to December 31st, 2025. The decision allows taxpayers to benefit from exemptions on a wide range of financial penalties, including those related to late registration, delayed payment, overdue tax return filing, and errors in VAT submissions.
The extension follows a previous grace period and forms part of the Kingdom’s broader effort to encourage compliance, ease financial burdens, and enhance transparency in tax dealings.
To benefit from the initiative, taxpayers must ensure they are properly registered, file all outstanding returns, and fully settle any due taxes within the designated time frame. While the programme allows for flexible settlement plans, including instalments, these must be requested and approved during the waiver period itself. However, the waiver does not apply to fines associated with tax evasion, violations recorded after June 30th, 2025, or any fines paid prior to July 1st, 2025.
According to ZTCA, the initiative is designed to support businesses and individuals in meeting their tax obligations more efficiently and to encourage voluntary disclosure and correction of tax filings without the added pressure of financial penalties. A detailed guide is now available to assist taxpayers in understanding eligibility requirements, covered violations, and application procedures. The authority has also opened direct communication channels - over the phone and its website - to answer inquiries and facilitate submissions throughout the waiver period.
