Businesses in Saudi Arabia enter the final months of 2026 with a significant tax priority: the remaining ZATCA Tax Amnesty window.
The coming months provide an opportunity to review historical tax positions while keeping future digital compliance requirements on track. Businesses operating across the Middle East should also account for major tax changes affecting their entities elsewhere in the region.
Review historical tax positions before 31 December
ZATCA's Cancellation of Fines and Exemption of Financial Penalties Initiative has been extended until 31 December 2026.
Subject to its conditions and exclusions, the initiative can provide relief from eligible penalties relating to areas including late registration, late payment, late filing and corrections to VAT returns.
Businesses should review unresolved historical tax positions early enough to determine whether the initiative applies and complete any required remediation before the deadline.
This may involve identifying outstanding returns or liabilities, assessing historical VAT positions and ensuring that the principal tax due is settled or dealt with under an approved instalment arrangement, where applicable.
Regional tax priorities are also changing
Saudi-headquartered groups operating elsewhere in the Middle East face additional developments.
The UAE and Oman are progressing with e-invoicing implementation. Qatar has launched Pillar Two registration, while Bahrain and Kuwait are moving further into operational Domestic Minimum Top-up Tax (DMTT) compliance. Lebanon's 2026 tax changes also warrant review by businesses with local operations.
Regional tax teams should maintain visibility over these different requirements and assign clear ownership within each jurisdiction.
What should Saudi businesses do before year-end?
Businesses with unresolved historical tax matters should assess them while the current Tax Amnesty window remains available.
How BDO Saudi Arabia can help
BDO Saudi Arabia helps businesses review historical exposures, assess the application of the Tax Amnesty Initiative and prepare for evolving ZATCA compliance requirements.
Speak to our Tax and Zakat professionals to prioritise the actions that require attention.