COVID-19 Update: Saudi Arabia | Tax and VAT deadline extension

Important information for all incorporated companies in Saudi Arabia

To mitigate the impact on economic activities arising due to Pandemic (COVID-19), the government of Saudi Arabia has announced it will postpone the filing and the associated payments of the following for three months; Zakat, income tax, withholding tax, value added tax and excise tax due within the period from 18 March 2020 to 30 June 2020 as follows:

  1. Zakat and income tax returns for the year ended 31 December 2019

Tax period

Original due date Extended due date
Fiscal year 2019 ended 31 March 2019 29 April 2020

29 July 2020

 

  • GAZT will issue Zakat or tax certificates for the year 2019 without any restrictions.
  • There will be a suspension of fines for late payment of instalments, fines for amendment of declarations, fines for noncooperation of taxpayers and examination fines during the period of initiatives of 18 March 2020 to 30 June 2020.
  • Businesses who are filing the return now can also delay the payment of Zakat or tax till the extended due date. No cash advance or bank guarantee to be furnished.
  1. WHT returns, filing and payments extended for three months

Tax period

Original due date

Extended due date

        March 2020

10 April 2020

10 July 2020

        April 2020

10 May 2020

10 August 2020

May 2020 10 June 2020

10 September 2020

 

Note: Due dates of returns from the month of June 2020 will not change.

  1. VAT returns and payments extended for three months

Monthly VAT returns

Tax period

Original due date Extended due date

February 2020

31 March 2020

30 June 2020

      March 2020

30 April 2020

31 July 2020

      April 2020

31 May 2020

31 August 2020

      May 2020 30 June 2020

30 September 2020

Note: Returns from June 2020 will not be postponed.

 

Quarterly VAT returns

Tax period

Original due date

Extended due date

January to March 2020 30 April 2020

31 July 2020

Note: Returns in the second quarter (April to June 2020) will not be extended. The original due date 31 July 2020 shall be applicable.

The deferral of VAT payment on imports does not require submitting any applications to GAZT. There will be system-enabled mechanism of deferring the payment of tax for those who are VAT registered until 30 June 2020, provided that the deferred tax is recognized during the tax return for the same tax period in which the date of import took place.