GTL Summary:

Article 42 establishes penalties for tax non-compliance. A person submitting an incorrect tax return, or any related document, which results in an under-calculation of tax due is liable for a fine equal to 50% of the difference between the calculated tax and the actual amount owed. However, the Authority's Board of Directors may set terms to exempt a person from this penalty or reduce it. Additionally, failing to submit a tax return within the period specified by the Regulations incurs a separate fine, ranging from a minimum of 5% to a maximum of 25% of the tax value that should have been declared.

Document Type: Tax Law Article
Law: Value Added Tax Law
Article Number: 42
Country: 🇸🇦 KSA
Location: Chapter 16 - Tax Evasion and Penalties
Order: 42
Last updated at: 2025-12-19 09:23:03 UTC

Chapter 16 - Tax Evasion and Penalties

Article 42

Any Person who files an incorrect Tax Return to the Authority, amends a Tax Return after filing or files any document with the Authority in relation to the Tax due by him which results in an error in the calculation of the Tax amount resulting in an amount that is less than the Tax due shall be liable to a fine equal to (50%) of the value of the difference between the calculated Tax and the Tax due.
The Authority may, according to the terms determined by the Board of Directors, exempt a Person from the penalty set out in paragraph 1 of this Article or reduce the same.
Any Person that fails to submit a Tax Return within the period specified by the Regulations shall be liable to a fine of not less than (5%) and not more than (25%) of the value of the Tax that he would have had to declare.

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