June 20, 2022
Saudi Arabia relaunches tax amnesty initiative
On 1 June 2022, Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA or the Authority) announced through its portal the relaunch of the ZATCA’s initiative to cancel fines and financial penalties for certain taxes from 1 June 2022 to 30 November 2022. The amnesty was relaunched to reduce the economic effects of the COVID-19 pandemic on businesses in Saudi Arabia.
In March 2020, Saudi Arabia first introduced economic relief initiatives to alleviate the economic impact of COVID-19 for businesses in the country. The initiatives included a tax amnesty program to provide relief to taxpayers from fines relating to tax returns, subject to certain conditions. The relief initially covered the period from 18 March to 30 June 2020 and was extended twice until 30 September 2020 and until 30 June 2021.
On 1 June 2022, the ZATCA announced the relaunch of the tax amnesty program and also issued the English version of the Simplified Guidelines.
Based on the Simplified Guidelines, highlights of the 2022 tax amnesty initiative include:
The tax amnesty covers the period from 1 June 2022 to 30 November 2022.
The amnesty initiative applies to the following taxes:
Types of fines covered
Exemption from unpaid fines, including:
The amnesty initiative excludes the following:
To take benefit of the initiatives, certain conditions are required to be met such as full payment of the principal tax due and filing of any unfiled returns, among others.
Businesses should carefully review their ongoing compliance practices and any assessments issued by the ZATCA and evaluate whether the amnesty may benefit them.
For additional information with respect to this alert, please contact the following:
EY Consulting LLC, Dubai
Ernst & Young Professional Services, Riyadh
Ernst & Young Professional Services, Al Khobar
Ernst & Young LLP (United States), Middle East Tax Desk, New York