ZATCA extends penalty cancellation initiative until December 2025

The Zakat, Tax and Customs Authority (ZATCA) announced that the Minister of Finance decided to extend the penalty cancellation and financial sanction exemption initiative for taxpayers subject to tax regulations for an additional six months, starting from July 1, 2025.

In a statement, the authority clarified that the initiative includes exempting taxpayers from penalties for late registration under all tax laws, late payment penalties, and late filing of tax returns under tax laws. This is in addition to penalties for correcting VAT returns, violations identified through field inspections related to e-invoicing compliance, and other general VAT-related penalties.