ZATCA Announces New Six-Month Extension of Tax Penalty Relief Program

Saudi Arabia has approved a new six-month extension to its tax penalty relief program, providing continued support to taxpayers across all tax systems. The Saudi Zakat, Tax and Customs Authority (ZATCA) confirmed that the Minister of Finance authorized the extension, which will be effective from January 1, 2026, through June 30, 2026, following the conclusion of the previous waiver period on December 31, 2025.

Under the initiative, eligible taxpayers will be exempt from a range of fines and financial penalties. These include penalties for late registration, delayed payment of taxes, and late submission of tax returns across all tax systems. The waiver also covers fines related to correcting VAT returns, penalties resulting from field inspection violations associated with electronic invoicing regulations, and other general VAT-related penalties.

ZATCA outlined several conditions that must be met to benefit from the waiver. Taxpayers must be registered with the relevant tax system, submit all required tax returns, and settle the full principal amount of any outstanding tax liabilities. The initiative applies strictly to penalties and does not waive the underlying tax amounts.

Taxpayers facing financial constraints may apply for an installment plan through ZATCA, provided the request is submitted during the initiative’s validity period. All installments must be paid according to the schedule approved by the authority. ZATCA clarified that the initiative does not apply to penalties related to tax evasion violations or to penalties that were settled prior to the initiative’s effective date.

To ensure clarity, ZATCA has published a simplified guide on its official website detailing the scope of the initiative. The guide explains the types of fines covered, eligibility requirements, installment procedures, and examples of field enforcement violations included in the waiver.

ZATCA encouraged taxpayers to take advantage of the extended relief period before it ends on June 30, 2026. For further assistance, taxpayers may contact the authority via its 24/7 unified call center at 19993, through the “Ask Zakat, Tax and Customs” account on X (@Zatca_Care), by email at [email protected] or via live chat on the ZATCA website.