The General Authority for Zakat and Income announced the extension of the initiative to cancel fines and exemption from financial penalties for taxpayers for an additional 6 months ending on June 30, 2021.
She explained, today (Thursday), that the last initiative includes exempting taxpayers from the fines for late payment and late submission of the declaration stipulated in all tax systems, in addition to the tax correction fine stipulated in the value-added tax system, and related to declarations that must be submitted or paid to the Authority. Before the effective date of the decision.
She added that the exemption includes exempting the taxpayer from fines by 100% if he pays the principal tax debt related to the declaration from which the fine or fines arose in full during the period from January to March of this year.
She indicated that it includes exempting the taxpayer from fines by 75% if he pays the principal tax debt related to the declaration from which the fine or fines arose in full during the period from April to May of the current year, and by 50% if he pays the principal tax debt related to the declaration from which it arose Fine or fines in full during the month of June 2021.
She said that the exemption is also applied to the same fines referred to previously, which may arise from any assessment or re-evaluation made by the authority for any tax return that must be submitted to the authority before the date on which this initiative comes into effect on 06/08/1442 AH, provided that the taxpayer pays the original tax debt. Relating to the tax return that has been fully assessed or re-evaluated by the Authority, with the exemption percentages applied according to the deadlines during which the principal tax debt is paid according to the rates set out previously above.
She stressed that the initiative includes exemption from the unpaid fines referred to previously in this statement, at a rate of 100% if the principal tax debt related to it has been fully paid before the effective date of this initiative specified in advance.
She pointed out that it does not include exemption from any fines inflicted by the authority, other than fines for late payment, late submission and correction of the declaration, and it does not include fines inflicted on the basis of tax evasion violations, as well as fines that were paid before the date of their implementation.