The Zakat, Tax and Customs Authority (ZATCA) has announced a tax amnesty initiative, which will provide taxpayers with the option of cancellation and or removal of tax penalties relating to taxes covered in the tax laws including Value-Added Tax (VAT), Corporate Income Tax (CIT) and Withholding Tax (WHT), on the condition that the taxpayers settle the principal tax claims by November 30, 2022.
The amnesty initiative starts as of today (June 1, 2022) and lasts until November 30, 2022. A summary of the initiative is as follows:
- Exemption of fines/penalties related to late registrations as long as the registration was due before the amnesty announcement (i.e., June 1, 2022)
- Exemption fines/penalties associated with late tax payments and late return filings for all due taxes (i.e., CIT, WHT, VAT, etc.)
- Exemption of unpaid fines/penalties related with the correction of VAT Returns
- Exemption from unpaid fines/penalties as mentioned in Article 45 of the VAT Regulations, provided these were imposed prior to the amnesty announcement (i.e., June 1, 2022)
The condition for availing the benefits of the amnesty scheme listed above, is that the taxpayer must submit all due Returns and settle all due taxes (principal/original amounts). The taxpayers can also submit a payment instalment plan request to the ZATCA, and this would need to be approved by the Authority during the amnesty period.
Following information currently available, the amnesty scheme does not cover fines/penalties related to tax evasion.
The ZATCA will also be releasing further messages, details, and guidelines on the use of this initiative over the next few days. To discuss the amnesty and how this may impact your tax position, contact us.
To discuss the amnesty and its implication to you, contact Adel Daglas.
