In implementation of the Royal Decree regarding the introduction of incentives and initiatives aimed at mitigating the economic and developmental impacts on the private sector in light of the repercussions of the spread of the Coronavirus and the measures taken to combat its spread, the General Authority of Zakat and Tax (GAZT) announced the launch of several initiatives designed to stimulate the economy and support the private sector. These initiatives come in line with the significant efforts exerted by the state to combat the new Coronavirus and reduce its potential financial and economic impacts on the private sector.
GAZT announced a series of facilities for taxpayers aimed at simplifying zakat and tax procedures. These include postponing the deadlines for filing and payment for establishments registered for VAT, whether on a monthly or quarterly basis, with new extended due dates for returns and payments covering the months of February, March, April, and May 2020. For quarterly filers, the deadline for the first quarter of 2020 has also been extended. Similarly, the deadline for filing and payment of Excise Tax returns for the second period covering March and April 2020 has been postponed.
VAT-registered taxpayers are also allowed to defer the payment of VAT due on importation for imports cleared by Customs and related to their economic activities, from the date of the announcement of the initiatives until June 30, 2020, provided that the deferred tax is declared in the VAT return for the corresponding tax period. Excise-registered taxpayers are likewise permitted to postpone the payment of Excise Tax due on importation for goods cleared by Customs within the same timeframe, with the imported excisable goods released in accordance with applicable customs regulations and without requiring guarantees. The deferred Excise Tax is to be paid through temporary returns submitted to the Authority on specified dates depending on the month of importation.
The initiatives also include extending the filing period for Zakat and Income Tax returns due for the financial year ending in 2019 by three months for all returns whose deadlines fall between the announcement date and April 30, 2020. For example, returns due on June 30, 2020, will now be due on September 30, 2020. The deadlines for filing and paying Withholding Tax for March, April, and May 2020 have also been extended, with new due dates in July, August, and September respectively.
Furthermore, GAZT has suspended the imposition of late payment penalties, penalties for amended returns, penalties for non-cooperation, and penalties for assessments from the date of the announcement until June 30, 2020. It has also expanded the acceptance of installment requests without requiring a down payment. Zakat certificates for 2019 returns will be issued without restrictions, and the Authority will expedite the processing of refund claims submitted by taxpayers in accordance with the relevant regulations until June 30, 2020.
In addition, enforcement procedures to suspend taxpayer services and freeze funds have been halted from the date of the announcement until June 30, 2020, and existing suspensions and freezes will be lifted for taxpayers whose services were stopped before the announcement of the initiatives.
GAZT has urged establishments and interested parties with inquiries to contact the unified call center at 19993, via email at Gazt_care@, or through the Customer Care account on Twitter.