About the update
Saudi Arabia's tax landscape continues to evolve as the authorities strengthen compliance measures while providing taxpayers with opportunities to regularise their tax positions.
What's covered this quarter
During the second quarter of 2026, the Zakat, Tax and Customs Authority (ZATCA) announced a further six-month extension of its Cancellation of Fines and Exemption of Penalties Initiative, giving eligible taxpayers additional time to correct their tax affairs and benefit from penalty relief.
The initiative covers several key taxes in Saudi Arabia, including VAT, withholding tax, excise tax, income tax and Real Estate Transaction Tax (RETT), while setting out the conditions taxpayers must meet to qualify for the exemption. It also clarifies which penalties remain excluded and highlights the importance of timely compliance before the initiative expires.
Understanding these developments is essential for businesses operating in Saudi Arabia to maximise the available relief, reduce compliance risks and prepare for future tax obligations.