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January 28, 2021
2021-0204

Saudi Arabia extends tax amnesty until 30 June 2021

On 21 January 2021, Saudi Arabia's Ministry of Finance issued Ministerial Resolution (MR) No.2303, extending the General Authority of Zakat and Tax (GAZT) tax amnesty initiative until 30 June 2021.

MR No. 2303 provides relief from fines relating to tax returns, Value Added Tax return corrections, and tax payments due before 21 January 2021:

  • If the principle tax due is fully paid by 31 March 2021, 100% of the fines will be waived.
  • If the principle tax due is fully paid by 31 May 2021, 75% of the fines will be waived.
  • If the principle tax due is fully paid during June 2021, 50% of the fines will be waived.

The relief does not apply to any fines that were paid before 21 January 2021, or to fines relating to tax evasion.

Except in the case of evasion, the amnesty also allows taxpayers to address prior filing positions without the imposition of fines.

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CONTACTS

For additional information with respect to this Alert, please contact the following:

Ernst & Young & Co (Public Accountants), Riyadh

  • Asim J. Sheikh, KSA Tax Leader
    asim.sheikh@sa.ey.com
  • Esraa Albuti
    esraa.albuti@sa.ey.com
  • Imran Iqbal
    imran.iqbal@sa.ey.com

Ernst & Young & Co (Public Accountants), Jeddah

  • Irfan Alladin
    irfan.alladin@sa.ey.com
  • Hussain Asiri
    hussain.asiri@sa.ey.com

Ernst & Young & Co (Public Accountants), Al-Khobar

  • Syed Farhan Zubair
    farhan.zubair@sa.ey.com
  • Ali Khamis
    ali.k.khamis@sa.ey.com

Ernst & Young LLP (United States), Middle East Tax Desk, New York

  • Asmaa Ali
    asmaa.ali1@ey.com

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ATTACHMENT

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