Fine for late payment of VAT after tax return

Fine for late payment of VAT after tax return

The fine for late payment of tax due after submitting the tax return varies depending on the type of tax imposed. Based on the tax systems and regulations in Saudi Arabia, fines can be explained as follows:

First: The fine for late payment of value-added tax and excise tax

According to Article 43 of the Value Added Tax System and Article 22 of the Excise Tax System, the fine imposed for failure to pay the tax due within the specified period is:

• A fine equivalent to 5% of the unpaid tax value for each month or part thereof for which the tax has not been paid.

This means that once a new month of delay begins, a full 5% is charged to the remaining amount.

Fine for late payment of VAT after tax return

Second: The fine for late payment of income tax

The fine for late payment of income tax varies, as paragraph (a) of Article Seventy-Seven of the Income Tax System and Article Sixty-Eight of its Executive Regulations stipulate the following:

• A late fee of 1% of the unpaid tax for every thirty days of delay.

This fine is calculated from the tax due date until the actual payment date. It is worth noting that the executive regulations clarify that this fine is not calculated if the delay period is less than thirty days.

For law and legal consultations..Contact the office of lawyer Abdul Majeed Al Rashid.