KSA Tax Authorities announce a tax amnesty effective 1 June until 30 November 2022

2 June 2022 - On 1 June 2022, the Zakat, Tax and Customs Authority (ZATCA) announced on its website an amnesty scheme and issued the Guideline for amnesty on waiver of penalties. Our comments and observations on the updated version of the Guideline are outlined below.

Key features 

All taxpayers can avail of the tax amnesty during the next six months starting from 1 June until 30 November 2022. 

The taxes covered under the amnesty are Value Added Tax (VAT), Withholding tax, Excise, Income tax, and Real Estate Transaction Tax (RETT). Customs duties are not covered within the scope of the amnesty. 

Penalties that can be relieved under the amnesty include:

  • Late registration for all taxes
  • Delay in payment 
  • Late submission of return for all taxes
  • Revision of the VAT return
  • Fines arising from field audits for e-invoicing and VAT 
  • Paying the principal amount of tax assessed and keep contesting the matters in appeals

The procedure for availing of benefits from the amnesty is as follows: 

  • If not tax registered, the taxpayer is required to register with ZATCA
  • Submit all overdue returns to ZATCA 
  • For any incorrect disclosure of taxes in prior period returns, this will require full payment of the principal amount of tax as per the returns that are being submitted or revised

Taxpayers can submit an official request for an installment plan subject to:

  • ZATCA’s approval within the amnesty period
  • Instalments to be paid within the amnesty period according to the instalment plan approved by ZATCA

ZATCA have also issued detailed guidelines covering:

  • Key areas covered under the amnesty
  • Clarification of the types of fines covered under the amnesty
  • Conditions for benefit from the waiver associated with each type of fine
  • Procedure for submitting an application for an instalment plan.

The amnesty will not cover fines and penalties relating to:

  • Tax evasion
  • Fines that were paid before the effective date of the amnesty
  • Late payment fines related to the tax included in an instalment plan being paid after the end of the amnesty on 30 November 2022
Deloitte’s view 

We recommend that prompt action is taken in order to benefit from the various waivers available under the amnesty.

We are in continuous communication with the ZATCA and will keep you updated on further developments.

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