Saudi Arabia Relaunches COVID-19 Penalty Exemption Initiative

The Saudi Zakat, Tax, and Customs Authority (ZATCA) recently announced the relaunch of its penalty exemption initiative that was first introduced in response to the COVID-19 pandemic in 2020. The initiative is relaunched with effect from 1 June 2022 to 30 November 2022 for all taxpayers. As explained in the English-language simplified guide on the penalty exemption initiative, exemptions are provided from:

  • Fines resulting from late registration under all tax systems or tax laws;
  • Fines for delayed (late) payment and tax return filing in all tax systems;
  • Fines resulting from the correction of a VAT return; and
  • Fines resulting from field detection of violations of VAT and e-invoicing.

Source Orbitax


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