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May 15, 2026

Cancellation of Fines and Exemption of Financial Penalties

Simplified Guide

1 July 2025

Contents

Highlights of the Resolution

Types of taxes included in the Initiative

Initiative Exclusions

Conditions for Benefiting from the Initiative

Tax due installment steps

Field Detection Violations included in the Initiative

Illustrative Examples of the Initiative

The Zakat, Tax and Customs Authority ("ZATCA", "Authority") issued this guide for the purpose of clarifying certain treatments concerning the implementation of the statutory provisions in force as of the Guide's issue date. The content of this Guide shall not be considered an amendment to any of the provisions of the Laws and Regulations applicable in the Kingdom.

Furthermore, the Authority would like to highlight that the clarifications and indicative tax treatments, where applicable, shall be implemented by the Authority in light of the relevant statutory texts. Where any clarification, interpretation or content provided in this Guide is modified - in relation to unchanged statutory text - the updated indicative tax treatment shall then be applicable prospectively concerning transactions made after the publication date of the updated version of the Guide on the Authority's website.

"This Guide aims to elaborate H.E. Minister of Finance's Resolution with regard to extension of

Cancellation of Fines and Exemption of Financial Penalties Initiative


which is part of incentive initiatives taken by Zakat, Tax and Customs Authority (ZATCA) to mitigate the financial implications resulting from COVID-19 that affected the establishments. This is for a period of (6) months, starting from 1 July 2025".

Rectifying the status of your establishment

Exempts you from fines

Take advantage of Exemption of Fines Initiative

During the period 1 July 2025 - 31 December 2025

Highlights of the Resolution