Late Return Filing

Penalties imposed for late return filing are 1% of the company's revenue up to SAR 20,000, or 5% to 25% of the tax due depending on the length of the delay.

Late Payment

Late payment of tax will result in an interest penalty of 1% per 30 days of the tax due. This late payment interest penalty applies for late return filings in addition to the penalties covered above.

Tax Evasion

For cases of tax evasion through incorrect returns or other misrepresentation, a penalty of 25% of the tax sought to be evaded will be imposed. The penalties for late payment will also be imposed.

COVID-19 Emergency Measures

In response to the COVID-19 pandemic, the imposition of fines and penalties is suspended from 1 June 2022 until 31 May 2023 (extended from 30 November 2022) for delayed (late) payment and tax return filing subject to conditions, including but not limited to:

• Registration in the tax system where registration is required for persons that are not registered; and
• Filing of all tax returns not yet filed and/or returns for the correction of previously filed returns, and the payment of the full tax debt associated with such late and/or corrected tax returns.

Taxes covered under this exemption include VAT, withholding tax, excise tax, income tax and real estate transaction tax.