The Zakat, Tax and Customs Authority (ZATCA) has extended its Tax Amnesty Scheme until 31 December 2026, giving businesses additional time to regularise their tax position without incurring eligible financial penalties, subject to the applicable conditions.
The extension applies to eligible penalties associated with tax obligations and tax returns due before 1 July 2026, subject to the conditions of the initiative. It offers eligible taxpayers a valuable opportunity to resolve outstanding compliance matters while strengthening their future tax governance.
What does the extension cover?
The amnesty provides exemptions from a broad range of tax-related penalties, including those imposed for late registration under all tax laws, late payment of taxes, late or non-submission of tax returns and corrections to VAT returns. In addition, eligible taxpayers may apply for an instalment payment plan during the initiative period, making it easier to settle outstanding tax liabilities.
The initiative does not apply to penalties related to tax evasion, fines imposed under Article 45 of the VAT Law, penalties that were paid before the initiative came into effect, or penalties associated with tax returns due for submission to ZATCA after 30 June 2026.
Why businesses should act now
With the deadline approaching, businesses have a limited window to:
- Eliminate eligible financial penalties.
- Resolve historical tax compliance issues.
- Strengthen governance and regulatory compliance.
- Prepare their tax and finance functions for future ZATCA requirements.
- Improve internal tax processes and reduce future compliance risks.
- Reduce the risk of future ZATCA audits and regulatory disputes.
How BDO Saudi Arabia can help
BDO Saudi Arabia helps organisations use the amnesty period not only to resolve historical compliance issues, but also to strengthen tax governance and reduce future regulatory risk.
Our specialists can assist with:
Regulatory and tax compliance
We help businesses review their current tax position, identify historical exposures, regularise outstanding obligations, prepare and submit outstanding returns and ensure ongoing compliance with ZATCA requirements while reducing the risk of future penalties.
E-invoicing integration
Our team supports the implementation and optimisation of mandatory ZATCA e-invoicing solutions, integrating digital tax processes into existing ERP and finance systems to improve efficiency, reporting accuracy and compliance.
Cybersecurity and data protection
As organisations continue their digital transformation, we help secure financial and tax data while supporting compliance with Saudi cybersecurity frameworks, including NCA and other regulatory requirements.
AI and process automation
Where appropriate, we help organisations modernise their tax and finance functions through process automation and data analytics, improving reporting accuracy, strengthening compliance monitoring and reducing manual effort.
Strategic advisory
For organisations undergoing transformation or participating in Vision 2030 initiatives, BDO provides strategic advisory services that align tax, governance, digital transformation and regulatory compliance with long-term business objectives.
Don't miss the deadline
The ZATCA Tax Amnesty Scheme represents a time-sensitive opportunity for businesses to resolve outstanding tax matters with relief from eligible financial penalties and establish a stronger compliance framework for the future.
Although the scheme has been extended until 31 December 2026, businesses should not wait until the deadline. Early action allows sufficient time to assess historical exposures, prepare outstanding filings and implement corrective actions before the initiative ends.
BDO Saudi Arabia's Tax & Zakat specialists are ready to help businesses navigate the amnesty process, achieve compliance efficiently and implement sustainable tax governance solutions that support long-term business success.
FAQ
What is the ZATCA tax amnesty scheme?
The ZATCA tax amnesty scheme allows eligible taxpayers in Saudi Arabia to regularise past tax obligations without incurring certain financial penalties, subject to the applicable conditions.
When does the ZATCA Tax Amnesty Scheme end?
The scheme is available until 31 December 2026, giving businesses an additional six months to benefit from amnesty.
Which tax obligations are covered?
The initiative applies to eligible penalties associated with tax obligations or returns that became due before 1 July 2026, provided taxpayers meet the eligibility requirements.
What penalties are waived under the ZATCA tax amnesty?
The amnesty covers eligible penalties for late registration, late payment, late or non-submission of tax returns and VAT return corrections, subject to the conditions of the initiative.
What is not covered by the ZATCA tax amnesty?
The initiative does not apply to penalties related to tax evasion, fines imposed under Article 45 of the VAT Law, penalties already paid before the scheme came into effect, or penalties associated with tax returns due for submission to ZATCA after 30 June 2026.
Do businesses still need to pay the underlying tax?
Yes. The ZATCA Tax Amnesty Scheme provides relief from eligible financial penalties, but taxpayers remain responsible for paying the underlying tax due.
Can businesses pay outstanding taxes in instalments?
Yes. Eligible taxpayers may apply for an instalment payment plan during the amnesty period to help settle outstanding tax liabilities.
Why should businesses apply before the deadline of ZATCA tax amnesty?
Applying before 31 December 2026 allows businesses to eliminate eligible penalties, resolve historical tax issues and strengthen future tax compliance.
How can BDO Saudi Arabia support businesses during the ZATCA tax amnesty?
BDO Saudi Arabia can help assess eligibility, prepare outstanding tax filings, implement e-invoicing solutions, improve tax governance and reduce future compliance risks.