Fines by GAZT in Saudi Arabia

Penalty for failure to file shall apply in the following cases:

a) Failure to file the return within 120 days of the end of the fiscal year.

b) Failure to use the legally prescribed return form notwithstanding timely filing of return.

c) Failure to pay payable tax per return notwithstanding timely filing of the legally prescribed return form.

d) Failure to notify the Department of cessation of activity and to file the return and pay accordingly within 60 days of cessation.

e) Failure to file the information return by a partnership within 60 days of the end of its fiscal year.

In case of failure to file the return within the legally prescribed period, the higher penalty of the following two penalties shall apply:

a) An amount equal to 1%of the taxpayer’s gross receipts and not to exceed 20.000 Saudi riyals.

b) According to the following schedule:

5% of the underpayment of tax if the delay is for up to 30 days after the due date;
10% of the underpayment of tax if the delay is more than 30 and no more than 90 days after the due date;
20% of the underpayment of tax if the delay is more than 90 and no more than 365 days after the due date;
25% of the underpayment of tax if the delay is more than 365 days after the due date.

In addition to the penalties mentioned in the previous Article, 1 percent of underpayment of tax for each 30 days of the delay shall be added in the following cases:

Delay in payment of tax payable per the return.

Delay in payment of tax payable per the Department’s assessment.

Delay in payment of advance payments due at the end of the 6th, 9th and 12th months of the taxpayer’s fiscal year.

Delay in payment of tax approved to be paid in installments from due date.

Delay in paying over of tax, required to be withheld, after the first ten days of the month following the month during which payment subject to withholding was made to a recipient.

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