The Minister of Finance,
based on the powers entrusted to him by law,
based on Royal Order 60699 dated 26 Ramadan 1443 [28 April 2022], regarding the approval to re-launch the initiative to “Cancel Fines and Pardon Financial Punishments for Payers”, and authorize me to determine the standards, controls, and procedures for their application, and the authority to extend them if necessary.
after perusal of the Income Tax Law issued by Royal Decree D/1 dated 15 Muharram 1425 [7 March 2004], the Excise Tax Law issued by Royal Decree D/86 dated 27 Sha’ban 1438 [24 May 2017], the Value Added Tax Law issued by Royal Decree D/113 dated 2 Dhu Al-Qa’dah 1438 [25 July 2017], and the Executive Regulation of the Real Estate Transaction Tax issued by Ministerial Decision 712 dated 15 Safar 1442 [3 October 2020], and its amendments,
hereby decides
First
The implementation of the initiative to “Cancel Fines and Pardon Financial Punishments for Payers” issued by Ministerial Decision 799 dated 7 Jumada Al-Thani 1445 [20 December 2023] is hereby extended starting from 1 July 2024 for a period of six months.
Second
The payer, registered with the Zakat, Tax, and Customs Authority, is exempted from the late registration fine stipulated in the tax laws in the event that all the declarations due to be submitted to the authority are submitted, and he pays the full principal of the tax debt due into force within the period from 1 June 2022 until the end of this initiative, or submits an application for its installment within the period from 1 June 2022 until the end of this initiative, with the payer adhering to the installment plan approved by the Zakat, Tax, and Customs Authority.
Third
The payer is exempted from the late payment fine and the delay in submitting the declaration stipulated in all tax laws, and the fine for correcting the declaration stipulated in the Value Added Tax Law associated with a tax declaration due to be submitted to the authority before 1 July 2024, whether the fine arises as a result of an action taken by the payer or the result of a linkage or revaluation conducted by the Zakat, Tax, and Customs Authority, provided that the payer pays the full principal of the due tax debt relating to the declaration from which the fine arose within the period from 1 June 2022 until the end of this initiative, or submits an application for its installment within the period from 1 June 2022 until the end of this initiative, with the payer adhering to the installment plan approved by the Zakat, Tax, and Customs Authority.
Fourth
The payer is exempted from the unpaid financial fines stipulated in the Value Added Tax Law article 45, which was signed before 1 July 2024, provided that the payer submits all the declarations due to be submitted to the authority, and pays the principal of the tax debt due by virtue of it within the period from 1 June 2022 until the end of this initiative, or submits an application for its instalment within the period from 1 June 2022 until the end of this initiative, with the payer adhering to the instalment plan approved by the Zakat, Tax, and Customs Authority.
Fifth
The payer is exempted from the full unpaid fines referred to in clause Third of this decision if he has paid the principal of the tax debt relating to it in full before 1 July 2024.
Sixth
The exemption from the late payment fines referred to in clause Third of this decision, includes the late payment fines associated with the tax asset included in the instalment plan approved by the Zakat, Tax, and Customs Authority, the date of payment of which falls after the end of the period of this initiative. In the event that the payer fails to comply with the instalment plan approved by the authority during or after the end of the period of this initiative, he will be subject to a late payment fine associated with the unpaid tax asset.
Seventh
The payer is not exempted from the fines resulting from tax evasion violations, including the fines stipulated in clause Second, Third, and Fourth of this decision.
Eighth
This decision must be communicated to those who are required to implement it and act on it.
May Allah provide success.
Mohammed bin Abdullah Al-Jadaan
Minister of Finance
Issued on: 28 Dhu Al-Qa’dah 1445
Corresponding to: 5 June 2024
Published in Umm Al-Qura 5037 issued on 5 July 2024.