The provisions of this Regulation apply to financial institutions, individuals, or intermediaries obligated to report to the General Panel for Zakat and Income any specific information for tax purposes or regarding certain financial accounts in accordance with the provisions of a valid agreement to which the Kingdom is a party, and in accordance with the tax information declaration and the forms specified by each agreement.

Any financial institution, individual, or intermediary that fails to notify the General Panel for Zakat and Income about any specific information or certain financial accounts for tax purposes, in accordance with the provisions of a valid agreement to which the Kingdom is a party, shall be considered in violation of the provisions of this Regulation, according to the procedures and forms specified in each agreement.

Anyone who violates the provisions of this Regulation shall be punished as follows:
1- A financial fine of (500) five hundred Riyals for each day of delay after the expiration of the specified period for submitting the tax declaration according to each agreement, provided that the total amount of the fine shall not exceed (15,000) fifteen thousand Riyals in all cases.
2- A financial fine of (5,000) five thousand Riyals for each violation related to the failure to submit a tax information declaration as required by the specified form for each agreement.
3- A financial fine of (5,000) five thousand Riyals for anyone who provides incorrect or incomplete data regarding the information required to be included in the information declaration for each agreement, unless such information pertains to a third party and it is proven that there was no intent to provide incorrect or incomplete data.
4- A financial fine of (3,000) three thousand Riyals for each violation for failing to submit an information declaration in the manner described in each agreement.
5- A financial fine of (3,000) three thousand Riyals for anyone who refuses to cooperate with the competent employee during the performance of their duties and the exercise of their powers according to each agreement.

The General Panel for Zakat and Income is responsible for reviewing violations of the provisions of this Regulation and applying the penalties contained therein, provided that the penalty is issued by a decision from the Minister of Finance, and an appeal may be filed against it before the competent judicial authority as per the regulations.

The General Panel for Zakat and Income is responsible for collecting the fines mentioned in Article (3) of this Regulation in accordance with the applicable legal procedures.

1- The provisions of this Regulation apply to the Agreement concluded with the Government of the United States of America to enhance international tax compliance and implement the Foreign Account Tax Compliance Act (FATCA) and its annexes: (First) and (Second), and the Memorandum of Understanding related to the Agreement between the Government of the Kingdom of Saudi Arabia and the Government of the United States of America to enhance international tax compliance and implement the Foreign Account Tax Compliance Act (FATCA) approved by Royal Decree No. (M/52) dated 10/5/1438 AH.
2- The provisions of this Regulation apply to agreements for the avoidance of double taxation and the prevention of tax evasion concerning income and capital taxes in force in the Kingdom.
3- By a decision of the Council of Ministers, the provisions of this Regulation may be applied to any other multilateral or bilateral agreement that is concluded or joined later regarding the exchange of information for tax purposes or to avoid double taxation and prevent tax evasion concerning income and capital.
 

The Minister of Finance shall issue, in coordination with the General Panel for Zakat and Income, the arrangements and procedures necessary to implement the provisions of this regulation.