The Minister of Finance,
based on the powers granted to him 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 Taxpayers”, and authorizing him 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], and its subsequent amendments, the Excise Tax Law issued by Royal Decree D/86 dated 27 Sha’ban 1438 [24 May 2017], and its subsequent amendments, the Value Added Tax Law issued by Royal Decree D/113 dated 2 Dhu Al-Qa’dah 1438 [25 July 2017], and its subsequent amendments, the Executive Regulation of the Real Estate Transaction Tax issued by Ministerial Decision 712 dated 15 Safar 1442 [3 October 2020], and its subsequent amendments, and the Law of the Real Estate Transaction Tax issued by Royal Decree D/84 dated 19 Rabi Al-Awwal 1446 [22 September 2024],
hereby decides the following
First
The implementation of the initiative to “Cancel Fines and Pardon Financial Punishments for Taxpayers” issued by Ministerial Decision 1462 dated 8 Dhu Al-Hijja 1446 [4 June 2025] is hereby extended starting from 1 January 2026 for a period of six Gregorian months, in accordance with the controls provided in this decision.
Second
The taxpayer, registered with the Zakat, Tax, and Customs Authority, is pardoned from the late registration fine stipulated in the tax laws in the event that all the returns due to be submitted to the authority are submitted, and he pays the full principal of the tax debt due for it within the period from 1 June 2022 until the end of this initiative, or submits an application for paying it in installments within the period from 1 June 2022 until the end of this initiative, with the taxpayer adhering to the installment plan approved by the Zakat, Tax, and Customs Authority.
Third
The taxpayer is pardoned from the late payment fine and the delay in submitting the return stipulated in all tax laws, and the fine for correcting the return stipulated in the Value Added Tax Law associated with a tax return due to be submitted to the authority before 1 January 2026, whether the fine arises as a result of an action taken by the taxpayer or the result of a assessment or re-assessment conducted by the Zakat, Tax, and Customs Authority, provided that the taxpayer pays the full principal of the due tax debt relating to the return from which the fine arose within the period from 1 June 2022 until the end of this initiative, or submits an application for paying it in installments within the period from 1 June 2022 until the end of this initiative, with the taxpayer adhering to the installment plan approved by the Zakat, Tax, and Customs Authority.
Fourth
The taxpayer is pardoned from the unpaid fines stipulated in article 45 of the Value Added Tax Law, imposed before 1 January 2026, provided that the taxpayer submits all the returns due to be submitted to the authority, and pays the principal of the tax debt due for it within the period from 1 June 2022 until the end of this initiative, or submits an application for paying it installments within the period from 1 June 2022 until the end of this initiative, with the taxpayer adhering to the installment plan approved by the Zakat, Tax, and Customs Authority.
Fifth
The taxpayer is pardoned from the full unpaid fines referred to in clause Third of this decision if he pays the principal of the tax debt relating to it in full before 1 January 2026.
Sixth
The pardon from late payment fines referred to in clause Third of this decision includes late payment fines related to the principal tax included in the installment plan approved by the Zakat, Tax, and Customs Authority, the payment of which is due after the end of the period of this initiative. If the taxpayer does not adhere to the installment plan approved by the authority during or after the end of the period of this initiative, a late payment fine related to the principal unpaid tax must be imposed on him.
Seventh
The taxpayer is not pardoned from the fines resulting from tax evasion violations, including the fines stipulated in clause Second, Third, and Fourth of this decision.
Eighth
This decision comes into force from the date of its issuance and must be communicated to those required to implement it.
May Allah provide success.
Mohammed bin Abdullah Al-Jadaan
Minister of Finance
Issued on: 6 Rajab 1447
Corresponding to: 26 December 2025
Published in Umm Al-Qura 5135 issued on 1 January 2026.