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Saudi Arabia: GAZT announces a Tax Amnesty Scheme for taxpayers beginning 1 June to 30 November 2022

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The Kingdom of Saudi Arabia (KSA) General Authority of Zakat and Tax (GAZT) announced a tax amnesty scheme that temporarily relieves fines for all taxpayers. The tax amnesty is available to all taxpayers for the next six months, from 1 June to 30 November 2022 

 

Which taxes does the amnesty apply to? 

 

It applies to: 

  • Value Added Tax (VAT),  
  • Withholding tax,  
  • Excise Tax,  
  • Income tax, and;  
  • Real Estate Transaction Tax (RETT).  

Customs duties are excluded from the amnesty’s coverage. 

 

Which penalties does the tax amnesty waive? 

 

  • Delay in the registration for all taxes 
  • Delay in the tax payment 
  • Delay in the submission of tax returns 
  • Corrective VAT returns 
  • Penalties imposed as a result of field audits for e-invoicing and VAT 

 

The amnesty does not include fines and penalties for:  

 

  • Evasion of tax 
  • Fines paid before the amnesty’s effective date (June 1).  
  • Delay in payments after the amnesty expires on 30 November 2022  

 

How to avail?  

 

  1. If not already registered, taxpayers must register with ZATCA.  
  2. Submit any outstanding tax returns to ZATCA.  
  3. Any erroneous declaration of taxes in prior-period returns will mandate full payment of the tax’s principal amount according to the filed or corrected returns. 

 

Is there an installment plan?  

 

Subject to the following conditions, taxpayers may file an official request for an instalment plan: 

  • Approval of ZATCA during the amnesty period  
  • Instalments to be paid during the amnesty period in accordance with the ZATCA-approved instalment plan 

 

GAZT produced a comprehensive guide that covers:  

 

  • Principal locations covered by the amnesty  
  • Clarification of the categories of penalties included in the amnesty  
  • Each form of fine has its own set of conditions for obtaining a waiver.  
  • Process for filing an application request for an instalment plan.
     

Insights 

 

We advise swift action for Digital Service companies in order to take advantage of the different amnesty exemptions.  

We are in constant contact with the GAZT and can help you with the process. Contact us now! 

 

 

 

Source: zatca.gov.sa  

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