The Zakat, Tax and Customs Authority (ZATCA) of Saudi Arabia has officially extended its tax penalty waiver until 30 June 2026, offering a critical six-month extension for businesses to settle outstanding dues.
The initiative allows taxpayers to cancel fines for late registration, filing, and payments by settling their original tax principal. Learn about the exact steps businesses must take to qualify and what happens if the deadline is missed.
Saudi Arabia’s tax authority, ZATCA, was established on 1 January 2026. This program helps people who missed tax deadlines or forgot to register their businesses. Through ZATCA, the government plans to help companies move toward a digital tax system, which is especially important for the new e-invoicing rules.
The waiver covers many taxes, including VAT and Corporate Tax. However, the relief is offered to companies that are registered with ZATCA and have submitted all old tax forms. The firms must also pay the original tax amount, and if they owe significant money, they request a monthly payment plan.
This program does more than just stop late fees. It covers specific fines that are usually expensive for small businesses. Knowing these details can help you plan your budget for 2026.
Late Filing Fees: You will not pay the usual 5% to 25% fine for old, late tax forms.
Registration Fines: Fees for not signing up for taxes on time are canceled.
Field Inspection Fines: You won't be fined for e-invoicing mistakes found during shop visits, as long as you fix them.
Payment Plans: You can pay in parts, but you must get approval before 30 June.
What is NOT covered: You still have to pay fines for tax fraud. You also cannot get a refund for fines you already paid.
If you choose a payment plan, be careful about not missing even a single payment, as ZATCA will add all the previous fines back to your account immediately.
Saudi Arabia is moving toward a very strict tax system. After June 2026, audits will be done electronically in real-time, which increases surveillance and transparency. Currently, business owners are required to fix their records in the next 6 months. Once the deadline passes, the penalty might increase dramatically.
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