Saudi Arabia Tax Update: Relief from tax penalty, government extended the deadline, now chance till 31 December 2026

There is a big relief news for businessmen and tax payers living in Saudi Arabia. The government has extended the deadline for the scheme to waive tax dues and penalties. Now people can avail this facility till 31 December 2026.

Zakat, Tax and Customs Authority (ZATCA) said that after the decision of the Finance Minister, this initiative of tax penalty waiver has been extended for another 6 months. This extension will come into effect from July 1, 2026 and will run till December 31, 2026. Under this scheme, penalties related to late registration, delay in tax payment, late submission of tax returns and correction in VAT returns will be waived.

Who will get the benefit of this scheme

To avail this exemption, taxpayers will have to fulfill some essential conditions. First of all they have to get registered on the ZATCA portal and submit all their outstanding tax returns. Additionally, it is important to pay the principal amount of tax in full, as this scheme is only for waiver of penalty.

If a taxpayer cannot make the entire payment in one go, he can apply for installment. Provided that this application is made within the time limit of the scheme and all the installments are paid on time.

What is not included in this scheme

The government has made it clear that this exemption will not be available in some cases. The fine imposed in cases of tax evasion will not be waived. Also, the fine which has already been paid before the start of the scheme is also not included in it.

The table below details which penalties will be waived and which will not:

ZATCA has also released a handy guide on its website, explaining the eligibility and installments process with examples. Taxpayers have been advised to utilize this opportunity before the time ends.

For help, people can call the 24-hour call center 19993. Apart from this, you can also get information through @Zatca_Care account on X (Twitter), email info@zatca.gov.sa or live chat on the official website.