Latest news with #penaltywaiver
Zawya
3 days ago
- Business
- Zawya
Saudi Arabia extends tax penalty waiver initiative until end of 2025
RIYADH — The Saudi Zakat, Tax, and Customs Authority (ZTCA) announced that the minister of finance has approved extension of the initiative to waive fines and exempt taxpayers from penalties for a period of six months, starting July 1, 2025. This extension applies to taxpayers until December 31, 2025 under all Saudi tax laws. The authority said that the initiative offers relief from penalties associated with late registration, late payment, and late filing of returns. It also waives fines for correcting value-added tax (VAT) returns, fines for field violations related to electronic-invoicing regulations, and general VAT-related infractions. The eligibility requirements stipulate that t axpayers must meet registration requirements as outlined by the authority. They must also submit all required returns to the authority that have not been previously submitted, correctly disclose all undisclosed taxes, and fully pay the principal tax debt related to the returns to be submitted or amended to correctly disclose outstanding tax liabilities. Taxpayers may also submit a request to the authority for installment payments, provided the request is submitted during the initiative's validity period and all installments shall be paid within their due dates according to the installment plan approved by the authority. The ZTAC emphasized that the initiative does not cover penalties for tax evasion violations, fines paid before the effective date of this initiative, or fines related to returns owed to the authority after June 30, 2025. The authority called on taxpayers to review the details of the initiative and its provisions through the simplified guide for the initiative, available on its website. The guide provides a detailed explanation of the salient features of the fine exemption decision, including clarification of the types of fines covered, the conditions for benefiting from the exemption associated with each type of fine, and the steps for disbursing financial dues in installments. It also outlines the field control violations covered by the initiative, with illustrative examples. The ZTAC urged all taxpayers to seize the opportunity of extending grace period for the initiative, stressing its readiness to answer any inquiries via the Unified Call Center number 19993, available 24/7, or "Ask Zakat, Tax, and Customs" account on the X Zatca_Care platform, or the email address [email protected], or the live chat on the authority's website. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Gulf Business
08-05-2025
- Business
- Gulf Business
Good news for UAE companies: Corporate tax penalties waived
Image credit: Getty Images The Federal Tax Authority (FTA) of the UAE announced on May 7 that it has begun exempting certain corporate taxpayers from administrative penalties incurred due to the late submission of registration applications. This exemption follows a decision issued by the UAE Cabinet. Read- How to qualify for the waiver To be eligible for the penalty waiver, the taxable person (or exempted category) must submit their Tax Return (or Annual Declaration) within seven (7) months from the end of their first Tax Period (or first Financial Year)—a reduction from the previously allowed nine months, Clarification from the FTA The FTA clarified that this exemption applies only to the first tax period of the taxable person (or exempt person required to register), regardless of whether the original due date falls before or after the Cabinet Decision's implementation. Additionally, if a taxable person has already paid a penalty for late registration and meets the exemption criteria, the penalty amount will be refunded and credited to the taxpayer's account with the Authority. Similarly, registered taxpayers who filed returns before the exemption decision but were penalized for late submission will also receive a refund of the paid penalties. FTA's appeal to taxpayers Khalid Ali Al Bustani, Director-General of the FTA, urged all unregistered corporate taxpayers to promptly submit their corporate tax registration applications and tax returns through the EmaraTax platform. He emphasized the importance of meeting the deadlines specified in the Cabinet Decision to benefit from the exemption. Aligned with the Cabinet's decision, the FTA's strategy focuses on expediting tax procedures and encouraging voluntary compliance across all business sectors. 'Widespread compliance is a key contributor to economic growth, and the FTA remains committed to full transparency and maintaining a flexible, evolving tax framework,' said Al Bustani. High registration turnout Praising the strong registration response in Q1 2025, Al Bustani revealed that over 543,000 corporate tax registrations had been recorded—indicating growing awareness and compliance among businesses. 'The FTA continues to engage with businesses through various awareness channels to guide them through compliance procedures, gather feedback, and identify solutions to potential challenges,' he added. Eligibility and conditions for exemption The FTA explained that the exemption applies to all persons subject to corporate tax registration , whether or not they have applied for registration or were penalized for delays. Conditions for exemption: If registered and a penalty was imposed but not paid, the return (or annual declaration) must be submitted within seven (7) months of the end of the first Tax Period (or Financial Year) to qualify for the exemption. If registered and the penalty was already paid, the return must also be submitted within seven (7) months of the end of the first Tax Period to receive a refund of the penalty. If not yet registered, the taxpayer (or exempt person) must submit the registration application and then file the return within seven (7) months of the end of the first Tax Period to benefit from the exemption.
