{"id":21737,"date":"2025-04-28T19:41:57","date_gmt":"2025-04-28T19:41:57","guid":{"rendered":"https:\/\/www.creationbc.com\/?p=21737"},"modified":"2025-12-03T07:49:23","modified_gmt":"2025-12-03T07:49:23","slug":"what-is-saudi-arabia-tax-amnesty-and-how-it-save-your-money","status":"publish","type":"post","link":"https:\/\/www.creationbc.com\/en-sa\/news\/what-is-saudi-arabia-tax-amnesty-and-how-it-save-your-money\/","title":{"rendered":"WHAT IS SAUDI ARABIA\u2019S 2025 TAX AMNESTY AND HOW CAN IT SAVE YOUR MONEY?"},"content":{"rendered":"<p>[vc_row][vc_column][vc_column_text]<em><strong>This article has been researched and written by the Tax Consultant Team at Creation Business Consultants. AI has not been used in generating this article.<\/strong><\/em><\/p>\n<p>&nbsp;<\/p>\n<p>Saudi Arabia&#8217;s Tax Amnesty Program offers businesses a chance to clear past tax obligations without penalties. In this blog, you&#8217;ll learn which taxes are covered, who qualifies, how to apply, and how companies can benefit, especially through a practical example on withholding tax.<\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"color: #039c7f;\">SAUDI ARABIA&#8217;S TAX AMNESTY PROGRAM<\/span><\/h2>\n<p>The Saudi Arabia Tax Amnesty Program, formally titled the &#8220;Cancellation of Fines and Exemption of Financial Penalties&#8221; initiative, is a Zakat, Tax and Customs Authority (ZATCA) measure. First introduced in March 2020 to mitigate the economic effects of the COVID-19 pandemic.<\/p>\n<p>The initiative has been extended for an additional 6-month period, starting from 1 July 2024 until 31 December 2024. This is an extension of the tax amnesty introduced on 1 June 2022 and covers tax obligations required to be fulfilled before the effective date of the initiative\u2019s extension.<\/p>\n<p>On 29 December 2024, this initiative has been extended for an additional six-months period, commencing on 1 January 2025, and concluding on 30 June 2025. This extension follows the tax amnesty program introduced on 1 June 2022 and applies to tax obligations that must be fulfilled prior to the date of the extension.<\/p>\n<h3>Taxes Covered by the Amnesty Program:<\/h3>\n<ul>\n<li aria-level=\"1\"><a href=\"\/en-sa\/tax-consultants\/corporate-tax\/\">Corporate Income Tax (CIT)<\/a><\/li>\n<li aria-level=\"1\"><a href=\"\/en-sa\/tax-consultants\/withholding-tax\/\">Withholding Tax (WHT)<\/a><\/li>\n<li aria-level=\"1\"><a href=\"\/en-sa\/tax-consultants\/vat\/\">Value Added Tax (VAT)<\/a><\/li>\n<li aria-level=\"1\"><a href=\"\/en-sa\/tax-consultants\/excise-tax\/\">Excise Tax<\/a><\/li>\n<li aria-level=\"1\"><a href=\"\/en-sa\/tax-consultants\/property-transfer-tax\/\">Real Estate Transaction Tax (RETT)<\/a><\/li>\n<\/ul>\n<h3>However, the Amnesty Program Excludes:<\/h3>\n<ul>\n<li aria-level=\"1\">Fines paid before June 1, 2022<\/li>\n<li aria-level=\"1\">Penalties arising from tax evasion<\/li>\n<\/ul>\n<p>[\/vc_column_text][vc_btn title=&#8221;BOOK A FREE CONSULTATION&#8221; style=&#8221;3d&#8221; align=&#8221;center&#8221; i_align=&#8221;right&#8221; i_type=&#8221;typicons&#8221; i_icon_typicons=&#8221;typcn typcn-chevron-right&#8221; add_icon=&#8221;true&#8221; link=&#8221;url:%2Fen-sa%2Fcontact-us%2F&#8221;][vc_column_text]<\/p>\n<h2><span style=\"color: #039c7f;\">MAIN PURPOSES OF THE KSA TAX AMNESTY PROGRAM<\/span><\/h2>\n<ul>\n<li aria-level=\"1\"><strong>Penalty Exemption<\/strong>: Upon approval by <a href=\"https:\/\/zatca.gov.sa\/en\/Pages\/default.aspx\" target=\"_blank\" rel=\"noopener\">ZATCA<\/a>, applicants will be exempt from penalties related to:\n<ul>\n<li aria-level=\"2\">Late Tax Registration<\/li>\n<li aria-level=\"2\">Late Payment of any Tax<\/li>\n<li aria-level=\"2\">Late Submission of Tax Returns<\/li>\n<li aria-level=\"2\">Amendments to VAT Returns<\/li>\n<li aria-level=\"2\">VAT Field Detection and E-Invoicing Violations<\/li>\n<li aria-level=\"2\">Late-Payment Fines in Instalments Plans<\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"2\"><strong>Support Business Continuity<\/strong>: The program allows businesses to resolve historical tax issues, helping them start with a \u201cclean slate,\u201d enhance financial stability, and restore business reputation.<\/li>\n<li aria-level=\"2\"><strong>Economic Relief<\/strong>: Provides financial relief to businesses and individuals impacted by economic challenges, especially those resulting from the COVID-19 pandemic.<\/li>\n<li aria-level=\"2\"><strong>Boost Revenue Collection<\/strong>: Encourages settlement of principal tax liabilities, thereby increasing government revenue to support national development initiatives.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"color: #039c7f;\">MAIN OBJECTIVES OF THE KSA TAX AMNESTY PROGRAM<\/span><\/h2>\n<ul>\n<li aria-level=\"1\"><strong>Increase Taxpayer Participation<\/strong>: Promote voluntary compliance by encouraging more taxpayers to regularize their Tax Status and settle outstanding dues.<\/li>\n<li aria-level=\"1\"><strong>Rectify Tax Records<\/strong>: Enable businesses to correct past discrepancies such as delayed registrations or incorrect returns without incurring penalties.<\/li>\n<li aria-level=\"1\"><strong>Enhance Administrative Efficiency<\/strong>: Reduce ZATCA\u2019s administrative burden by resolving tax issues proactively and minimizing the need for audits or legal actions.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"color: #039c7f;\">REQUIREMENTS TO BENEFIT FROM THE AMNESTY:<\/span><\/h2>\n<ul>\n<li aria-level=\"1\">Register with ZATCA (Zakat, Tax and Customs Authority).<\/li>\n<li aria-level=\"1\">Submit all outstanding tax returns.<\/li>\n<li aria-level=\"1\">Pay due taxes in full or apply for an approved instalment plan.<\/li>\n<\/ul>\n<p>Taxpayers may request instalment plans for outstanding dues, with potential waivers for late payment penalties on amounts due after June 30, 2025.<\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"color: #039c7f;\">EXAMPLE ON HOW COMPANIES CAN BENEFIT FROM SAUDI ARABIA&#8217;S TAX AMNESTY PROGRAM ON WITHHOLDING TAX IN SAUDI ARABIA<\/span><\/h2>\n<p>In Saudi Arabia, Withholding Tax (WHT) is imposed on payments made by resident entities to non-resident entities for services performed within the Kingdom. As part of Saudi Arabia&#8217;s destination-based taxation system, WHT is deducted at the source.<\/p>\n<p>The WHT return should be submitted within 10 days of the following month of making the payment to the non-resident entity to avoid any penalties.<\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"color: #039c7f;\">WITHHOLDING TAX (WHT) PENALTIES IN SAUDI ARABIA<\/span><\/h2>\n<ul>\n<li aria-level=\"1\"><strong>Late Payment Penalty<\/strong>: A fine of 1% of the unpaid tax is imposed for every 30 days of delay from the due date.<\/li>\n<li aria-level=\"1\"><strong>Failure to File WHT Return<\/strong>: ZATCA may impose additional administrative fines for failure to file monthly WHT returns on time.<\/li>\n<li aria-level=\"1\"><strong>Tax Evasion<\/strong>: If ZATCA determines that the taxpayer intentionally failed to withhold or report WHT, a penalty of up to 25% of the tax due may be imposed<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"color: #039c7f;\">EXAMPLE: CONSULTING SERVICES PROVIDED BY A NON-RESIDENT<\/span><\/h2>\n<p>A Saudi company, <strong>ABC Ltd<\/strong>., hires a non-resident consulting firm based in the United Kingdom to provide technical consulting services.<\/p>\n<p>The total payment for the services is <strong>SAR 1,000,000<\/strong>. According to Saudi tax law, payments for technical and consulting services provided by a non-resident are subject to a <strong>5% WHT<\/strong> rate.<\/p>\n<h4><i>Calculate the WHT:<\/i><\/h4>\n<ul>\n<li aria-level=\"1\"><em>Gross payment to XYZ Consultants: SAR 1,000,000<\/em><\/li>\n<li aria-level=\"1\"><em>WHT rate: 5%<\/em><\/li>\n<li aria-level=\"1\"><em>WHT amount = SAR 1,000,000 \u00d7 5% = SAR 50,000<\/em><\/li>\n<li aria-level=\"1\"><em>Net Payment to the Non-Resident: = Gross payment &#8211; WHT<\/em><\/li>\n<li aria-level=\"1\"><em>Net payment = SAR 1,000,000 &#8211; SAR 50,000 = SAR 950,000<\/em><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Per the scenario described, <\/span><b>ABC Ltd. <\/b><span style=\"font-weight: 400;\">could obtain waivers of all applicable penalties through Saudi Arabia Tax Amnesty Program by meeting necessary requirements before <\/span><b>1 January 2025.<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><b>ABC Ltd.<\/b><span style=\"font-weight: 400;\"> needs to meet ZATCA conditions for penalty relief by submitting outstanding returns and paying their principal tax obligations to obtain benefits from the exemption program.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For more information regarding how Creation Business Consultants can assist with <a href=\"\/en-sa\/tax-consultants\/\">Saudi tax advisory<\/a>, compliance and services, contact us for expert tax advisory today!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Email:\u00a0<\/span><a href=\"mailto:info@creationbc.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">info@creationbc.com<\/span><\/a><span style=\"font-weight: 400;\">\u00a0| UAE:\u00a0<\/span><a href=\"tel:+97120420878206240\"><span style=\"font-weight: 400;\">+971 4 878 6240<\/span><\/a><span style=\"font-weight: 400;\"> | Saudi Arabia: <a href=\"tel:+966 56 865 2329\">+966 56 865 2329<\/a><\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;1\/5&#8243;][vc_single_image image=&#8221;12267&#8243; alignment=&#8221;center&#8221; style=&#8221;vc_box_circle_2&#8243; onclick=&#8221;custom_link&#8221; link=&#8221;https:\/\/www.creationbc.com\/en-sa\/scott-cairns\/&#8221;][\/vc_column][vc_column width=&#8221;1\/5&#8243;][vc_column_text]<strong><a href=\"https:\/\/www.creationbc.com\/en-sa\/scott-cairns\/\">Scott Cairns<\/a>, <\/strong><br \/>\n<strong>Managing Director<\/strong><\/p>\n<p><a href=\"https:\/\/www.linkedin.com\/in\/scott-cairns-5001a95\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-6611\" src=\"https:\/\/www.creationbc.com\/wp-content\/uploads\/2019\/11\/download.png\" alt=\"\" width=\"37\" height=\"37\" title=\"\" srcset=\"https:\/\/www.creationbc.com\/wp-content\/uploads\/2019\/11\/download.png 225w, https:\/\/www.creationbc.com\/wp-content\/uploads\/2019\/11\/download-150x150.png 150w, https:\/\/www.creationbc.com\/wp-content\/uploads\/2019\/11\/download-80x80.png 80w\" sizes=\"auto, (max-width: 37px) 100vw, 37px\" \/><\/a>[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/5&#8243;][\/vc_column][vc_column width=&#8221;1\/5&#8243;][\/vc_column][vc_column width=&#8221;1\/5&#8243;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;1\/4&#8243;][vc_tta_accordion spacing=&#8221;1&#8243; active_section=&#8221;0&#8243; collapsible_all=&#8221;true&#8221;][vc_tta_section title=&#8221;ARTICLE UPDATES LOG&#8221; tab_id=&#8221;1682511105393-b019fb54-a8b804ca-28cc&#8221;][vc_column_text]This Article was researched and written on Apr 28th, 2025 by Murad Barakat.[\/vc_column_text][vc_column_text]<\/p>\n<div class=\"wpb_text_column wpb_content_element \">\n<div class=\"wpb_wrapper\">\n<div class=\"wpb_text_column wpb_content_element \">\n<div class=\"wpb_wrapper\">\n<p>This Article was reviewed and updated on Dec 3rd, 2025 by <a href=\"https:\/\/www.creationbc.com\/en-sa\/scott-cairns\/\">Scott Cairns<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][vc_column width=&#8221;3\/4&#8243;][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text]This article has been researched and written by the Tax Consultant Team at Creation Business Consultants. AI has not been used in generating this article. &nbsp; Saudi Arabia&#8217;s Tax Amnesty Program offers businesses a chance to clear past tax obligations without penalties. In this blog, you&#8217;ll learn which taxes are covered, who qualifies, how to [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":21740,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[103,100],"tags":[],"class_list":["post-21737","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sa-law","category-sa-taxes"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.creationbc.com\/en-sa\/wp-json\/wp\/v2\/posts\/21737","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.creationbc.com\/en-sa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.creationbc.com\/en-sa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.creationbc.com\/en-sa\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.creationbc.com\/en-sa\/wp-json\/wp\/v2\/comments?post=21737"}],"version-history":[{"count":6,"href":"https:\/\/www.creationbc.com\/en-sa\/wp-json\/wp\/v2\/posts\/21737\/revisions"}],"predecessor-version":[{"id":23063,"href":"https:\/\/www.creationbc.com\/en-sa\/wp-json\/wp\/v2\/posts\/21737\/revisions\/23063"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.creationbc.com\/en-sa\/wp-json\/wp\/v2\/media\/21740"}],"wp:attachment":[{"href":"https:\/\/www.creationbc.com\/en-sa\/wp-json\/wp\/v2\/media?parent=21737"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.creationbc.com\/en-sa\/wp-json\/wp\/v2\/categories?post=21737"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.creationbc.com\/en-sa\/wp-json\/wp\/v2\/tags?post=21737"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}