Saudi Arabia Waives Fines, Penalties for Taxpayers to Mitigate Pandemic’s Financial Impact

Saudi Arabia Waives Fines, Penalties for Taxpayers to Mitigate Pandemic’s Financial Impact

The Saudi Zakat, Tax and Customs Authority (ZATCA) announced the re-launch of an initiative to waive fines and exempt taxpayers from penalties for six months from June 1, 2022.

The initiative aims to mitigate the economic fallout of the coronavirus pandemic.

Fines for the delay in registration, default payment and delayed report submission are included in the exemption. However, fines for tax evasion and fines paid before the launch of the initiative will not be covered.

Experts confirmed to Asharq Al-Awsat that the initiative would enhance the continuity of enterprises in the labor market, especially SMEs.

The application of e-billing during the past year caused confusion in the market, especially that it was already struggling with the repercussions of the pandemic, experts noted.

Chairman of the Council of Saudi Chambers Ajlan al-Ajlan explained that the initiative contributes to supporting the business sector, the growth of commercial and economic activities, and mitigating the economic effects facing establishments because of COVID-19.

It also enhances the importance of compliance with tax regulations, added al-Ajlan.

Exemption from financial fines for all taxpayers subject to tax regulations will allow continuity for enterprises in the labor market, Saudi economist Fahad bin Jomaa told Asharq Al-Awsat.

This will give businesses the chance to restore their