July 31, 2023
Saudi Arabia further extends tax amnesty initiative until 31 December 2023
On 25 July 2023, Saudi Arabia's Zakat, Tax and Customs Authority (ZATCA) announced through its website that it is further extending the cancellation of fines and exemption of financial penalties for certain taxes, starting from 1 June 2023 through 31 December 2023. The ZATCA has also published an updated English version of the Simplified Guide — Cancellation of Fines and Exemption of Financial Penalties, which provides further elaboration on the tax amnesty program, including the exemptions available to taxpayers.
In March 2020, the ZATCA announced the tax amnesty program for the first time. This amnesty program has been extended over the past three years, most recently until 31 May 2023. The extensions are intended to mitigate the economic and financial effects of the COVID-19 pandemic on establishments.
For further information on the previous Saudi tax amnesty program and relevant periods, refer to the following EY Global Tax Alerts: Saudi Arabia extends tax amnesty until 30 June 2021, dated 28 January 2021; Saudi Arabia relaunches tax amnesty initiative, dated 20 June 2022; and Saudi Arabia extends tax amnesty initiative, dated 6 December 2022.
Key elements of the extended amnesty program
The new and extended amnesty program covers the following.
The exemption shall be subject to specific conditions, including:
Businesses should carefully review ongoing compliance practices and assessments issued by the ZATCA and take full advantage of the applicable tax amnesty initiatives before the deadline of 31 December 2023.
For additional information with respect to this Alert, please contact the following:
Ernst & Young Professional Services (Professional LLC), Riyadh
Ernst & Young Professional Services (Professional LLC), Jeddah
Ernst & Young Professional Services (Professional LLC), Al Khobar
Ernst & Young LLP (United States), Middle East Tax Desk, New York
Published by NTD's Tax Technical Knowledge Services group; Carolyn Wright, legal editor