In order to mitigate the implications of COVID – 19 pandemic, the Ministry of Finance (MOF) has offered exemption against some tax related penalties.
KSA General Authority of Zakat and Tax (“GAZT”) announced a voluntary disclosure initiative on 2 April 2020 for income tax, withholding tax, value added tax, and excise tax. The initiative runs from March 18, 2020 to June 30, 2020and the voluntary disclosures can only be made during this period. GAZT will exempt any penalties on the amount owed from the due date on non-submitted or amended declarations during the initiative period.
In Detail:
In line with the Royal Decree No. 45089 dated 23/07/1441AH corresponding to March 18,2020 Ministry of Finance (MOF) issued resolution No.3430 dated March 29, 2020 providing exemption from tax penalties. Companies can obtain the following relief between March 18 to June 30, 2020.
Taxpayer can amend its original submitted returns and can file its tax returns not submitted earlier, without any penalties. Late registration penalty relief. On application, GAZT will provide the installments for paying the due amounts as a result of the revision/submission of tax returns
Please note that the Governor of GAZT shall be authorized to issue the necessary procedures and controls to implement the provisions referred in this resolution.
Closing Remarks:
GAZT is offering taxpayers a great relief from significant penalty burden therefore, it is highly recommended opportunity for businesses who have unfiled tax returns, late registration with GAZT and returns which requires amendments.
For a detailed discussion of how this issue might effect your business, please contact
Muhammad Shahid Nazir
Partner – Corporate Finance & Deal Advisory
email: msnazir@34.18.81.201
mobile: +966 56 437 6295
Khawaja Soha But
Partner – Financial and Risk Advisory
email: sbutt@34.18.81.201
mobile: +966 59 001 7498
Hafiz Muhammad Almas
Partner – Tax Advisory
email: malmas@34.18.81.201
mobile: +966 53 779 1300
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