Fines cancellation and penalties exemption initiative extended to 31 December 2026

On 29 June 2026 ZATCA announced the Minister of Finance’s decision to extend the Cancellation of Fines and Exemption of Financial Penalties Initiative, for taxpayers under all tax laws, for six months from 1 July to 31 December 2026.

Fines covered

• Late registration under all tax laws.
• Late payment.
• Late filing of returns.
• VAT return correction fines.

Conditions

• The taxpayer must be registered with ZATCA.
• All outstanding returns must be filed.
• The principal tax due must be paid, or an installment plan requested during the initiative and paid on schedule.

Not covered

• Fines for tax evasion violations.
• Fines imposed under Article 45 of the VAT Law.
• Fines paid before the initiative took effect.
• Fines related to any return due after 30 June 2026.