23-Jun-2025 📢ZATCA 2025 Initiative: Cancellation of Fines and Exemption of Financial Penalties – Deadline 30th June 2025!

📢ZATCA 2025 Initiative: Cancellation of Fines and Exemption of Financial Penalties – Deadline 30th June 2025!
 

The Zakat, Tax and Customs Authority (ZATCA) has launched a special 6-month relief initiative effective from 1st January to 30th June 2025, offering a complete waiver of unpaid fines and financial penalties under various tax laws. 

This initiative aims to support taxpayers affected by the economic impact of COVID-19 and encourage improved voluntary tax compliance across the Kingdom. 

Below is a simplified and comprehensive breakdown to ensure you don’t miss the opportunity to benefit from this limited-time initiative. 
 

✅ Objective of the Initiative 

The initiative grants full waiver of fines and penalties related to: 

a) Late registration 

b) Delayed tax payments 

c) Late filing of returns 

d) Errors in VAT return correction 

e) Violations under E-invoicing and VAT field detection provisions

📅 Applicable only if the prescribed conditions are fulfilled between 1st January and 30th June 2025. 
 

🔍 Applicable Tax Types 

This initiative is applicable to the following tax categories: 

1. 1. Value Added Tax (VAT) 

2. Excise Tax 

3. Income Tax 

4. Withholding Tax 

5. Real Estate Transaction Tax (RETT) 
 

❌ What is Excluded? 

The initiative does not apply to: 

a) Fines already paid before 1st January 2025 

b) Penalties linked to returns that must be filed after 31th December 2024 

c) Fines arising from tax evasion violations including 

• i)   Late registration.
  ii)  Delay in payment and return submission.
  iii) Return amendment.
  iv) field detection. 
   

✅ Key Benefits – Full Waiver of These Fines 

1️⃣ Late Registration Fines 

Conditions to Claim Exemption: 

a) Taxpayer must register with ZATCA if not already registered 

b) Submit all due returns 

c) Either:

            i) Pay full principal tax due, or 
           ii) Apply for an installment plan and comply with it fully until 30th June 2025 
 

2️⃣ Late Filing Fines 

Conditions to Claim Exemption: 

a) File all outstanding returns due before 1st January 2025 

b) Pay full tax due, or 

c) Apply for a ZATCA-approved installment plan and follow it strictly 
 

3️⃣ Late Payment Fines 

Exemption Eligibility: 

a) Applies to all tax laws for amounts due before 1st January 2025 

b) Whether unpaid amount was: 
                                                  i)  Self-declared, or 
                                                  ii) Reassessed by ZATCA 

Conditions: 

a) Pay full tax principal, or 

b) Submit installment request and follow the approved plan until 30th June 2025 
 

4️⃣ VAT Field Detection & E-Invoicing Fines 

(For violations committed before 1st January 2025, as per Article 45 of the VAT Law)

Conditions to Claim Exemption: 

a) File all pending returns 

b) Pay or schedule all related tax dues 
 

👮‍♂️ Field Detection & E-Invoicing Violations Covered 

🔸 VAT Law Violations: 

a) Not issuing invoices / incorrect invoices 

b) Not maintaining proper records 

c) Obstructing ZATCA officials 

d) Incorrect VAT calculation 

e) Lack of compliance in including all tax invoices requirements in the invoices or credit and debit notes 

🔸 E-Invoicing Violations: 

a) Failure to issue and maintain invoices and notes electronically. 

b) Missing QR code on invoice 

c) System malfunctions not reported 

d) Unauthorized system functionalities 

e) Post-issuance modifications of e-invoices 

f) Failure to inform ZATCA of any malfunctions that hinder the process of issuance of e-invoices and notes. 

g) Deletion or amendment of the E-invoices and notes after issuance. 

✅ All above violations are eligible for fine waiver, provided corrective action is taken and dues are cleared or scheduled under installment. 

💳 Installment Plan – Step-by-Step Process 

a) If full payment is not possible, follow these steps to avoid losing benefits: 

b) Submit a tax due installment request to ZATCA within the initiative period. 

c) ZATCA will evaluate and approve the request based on eligibility. 

d) Installments will be scheduled based on ZATCA's procedures. 

e) Taxpayer must strictly follow the plan. 

⚠️ Important: 

If the installment plan is cancelled due to non-compliance, all previously waived fines will be reinstated and become payable retroactively from the original due date.

📌 Final Reminder 

🗓️ Initiative Period: 
Start: 1st January 2025 
End: 30th June 2025 

✔️ File your returns 
✔️ Pay or schedule your tax dues 
✔️ Submit registration if pending 
✔️ Apply for installment (if needed) 
 

🧠 Act Now – Don't Miss the Opportunity 

The Exemption of Fines and Financial Penalties Initiative is a golden opportunity to settle past non-compliance without any financial burden from penalties. This window will not be extended. 

For guidance, assistance in registration, return filing, or preparing your installment plan with ZATCA, feel free to contact our expert team today.