GAZT has released summary of initiatives to stimulate the economy and support the private sector

The General Authority of Zakat and Tax (GAZT)  has introduced a great Initiative and came up with an AMNESTY SCHEME to stimulate the Economy and support the Private sector from the on-going crisis.

We are aware that the deadlines for filing of VAT Returns and other Tax Returns (WHT, Excise & Zakat) has already been extended.

Further, the VAT registered business will be exempted from (Heavy) Penalties such as VAT Declaration amendment Penalty, Late Payment Penalty and Late filing of VAT Returns Penalty in the following circumstances:

1. Voluntarily amending the previously filed VAT Returns (2018 & 2019) if business finds any omission; and
2. Any Pending VAT Declarations not filed earlier.

Note that any VAT payment arising out of such amendments, needs to be paid or business can request for Installment plan of such additional VAT payment ON OR BEFORE 30 JUNE 2020.

This is a welcome move, and we strongly recommend that business should take maximum benefit from the amnesty scheme and should re-visit the Revenue figures as shown in Financials and the periodic VAT Returns, to avoid the heavy penalties.If the business does the amendments carefully and pay the legitimate VAT, then Business can save the following Heavy Penalties:

1. VAT late Filing Penalty – 5% of each month or part;
2. VAT late Payment Penalty – From 5% upto 25% of Tax due of each declaration.

This amnesty covers all types of Taxes: CORPORATE INCOME TAX, WITHHOLDING TAX, VAT AND EXCISE TAX.

Read summary of GAZT  initiatives to stimulate the economy and support the private sector.