RIYADH: The Zakat, Tax and Customs Authority (ZATCA) has announced that the Minister of Finance has approved a six-month extension of the initiative that waives certain tax fines and financial penalties for taxpayers covered by the Kingdom’s tax regulations. The extended initiative will take effect on July 1, 2026, and remain in force until December 31, 2026.

According to ZATCA, the initiative covers penalties for late tax registration under all tax systems, delayed tax payments, late submission of tax returns, and fines related to amendments of Value Added Tax (VAT) returns.

To qualify for the exemption, taxpayers must be registered with ZATCA, submit all outstanding tax returns, and pay the full principal amount of any unpaid tax liabilities. Those unable to settle the amount in one payment may apply for an installment plan, provided the request is submitted during the initiative period and all approved installments are paid according to the agreed schedule.

ZATCA clarified that the initiative does not apply to penalties resulting from tax evasion, fines imposed under Article 45 of the VAT Law, penalties that were settled before the initiative came into effect, or penalties linked to tax returns due after June 30, 2026.

The authority added that even if the initiative is extended beyond December 31, 2026, any future extension will continue to exclude penalties associated with tax returns due after June 30, 2026.

Taxpayers have been encouraged to review the initiative through ZATCA’s simplified guide available on the authority’s official website. The guide outlines the eligible categories of penalties, exemption requirements, installment procedures, and practical examples explaining how the initiative works.

ZATCA also urged eligible taxpayers to benefit from the extended waiver before it expires at the end of 2026. For inquiries or assistance, taxpayers can contact the authority through its 24/7 unified call center (19993), the Ask Zakat, Tax and Customs (@Zatca_Care) account on X, by email, or via the live chat service on the official ZATCA website.