The Saudi Zakat, Tax and Customs Authority (ZATCA) announced the re-launch of an initiative to waive fines and exempt taxpayers from penalties for six months from June 1, 2022.
The initiative aims to mitigate the economic fallout of the coronavirus pandemic.
Fines for the delay in registration, default payment and delayed report submission are included in the exemption. However, fines for tax evasion and fines paid before the launch of the initiative will not be covered.
Experts confirmed to Asharq Al-Awsat that the initiative would enhance the continuity of enterprises in the labor market, especially SMEs.
The application of e-billing during the past year caused confusion in the market, especially that it was already struggling with the repercussions of the pandemic, experts noted.
Chairman of the Council of Saudi Chambers Ajlan al-Ajlan explained that the initiative contributes to supporting the business sector, the growth of commercial and economic activities, and mitigating the economic effects facing establishments because of COVID-19.
It also enhances the importance of compliance with tax regulations, added al-Ajlan.
Exemption from financial fines for all taxpayers subject to tax regulations will allow continuity for enterprises in the labor market, Saudi economist Fahad bin Jomaa told Asharq Al-Awsat.
This will give businesses the chance to restore their financial accounts and realize their profits again, provided that they are registered on the authority’s website and that the payment process for the dues imposed by the state is regular, added Jomaa.
According to Jomaa, the pandemic has caused great losses to establishments in the labor market, but this initiative will ease the financial burdens facing them.
For his part, Saudi academic and economy expert Salem Bajaja told Asharq Al-Awsat that the initiative would strengthen and develop SMEs, allowing them to regain their strength, especially after they were exposed to the financial consequences of the pandemic.
