RIYADH — The General Authority of Zakat and Tax (GAZT) extended the waiver period of fines and financial penalties for taxpayers until June 30, 2021, the authority said in a statement. The move is part of the Kingdom's initiatives to stimulate the economy and support the private sector to face the economic fallout from the coronavirus outbreak. As part of the initiative, taxpayers will be exempted from fines on delays in the payment of due taxes or filing tax returns. They will be also exempted from the penalties imposed for correcting tax returns under the value-added tax (VAT) law. Taxpayers will be 100 percent exempted from fines if they fully pay the principal tax amount under the relevant tax return during the period from January-March 2021. The GAZT added that 75 percent of fines will be waived if taxpayers fully pay the principal tax under the relevant tax return during the period from April-May 2021. A 50 percent waiver will also apply to taxpayers that fully pay the principal tax under the relevant tax return during June. Waivers will also apply to the same penalties that might arise from any assessment or reassessment by the GAZT for any tax return that should be submitted ahead of the effective date of the initiative (Jan. 21, 2021). This comes on the condition that taxpayers will pay the principal amount under the tax return or the reassessment by the GAZT. Waivers will apply according to the periods during which the principal tax amounts are paid. Moreover, taxpayers will get a 100 percent waiver of unpaid fines, if the principal tax amount was fully paid before Jan. 21. On the other hand, the GAZT said the measure does not include any waivers of penalties that were imposed by the authority, other than delays in tax payments, submission of tax returns, and correction of tax returns. The initiative does not also cover the fines imposed for tax evasions and the fines paid before Jan. 21.
