English text status

English translation published by the Legislation and Legal Opinion Commission. The Arabic text published in the Official Gazette remains the legal reference in the event of any discrepancy.

Practical summary

Tax evasion carries imprisonment of three to five years and a fine from the VAT due up to three times that amount, with rules for repeat offences, legal Persons, and confiscation. Reconciliation is available on the accused's written request before prosecution or during proceedings until a final (irrevocable) judgment, on payment of the minimum fine plus the VAT due; it ends the criminal case.

Who should read this?

Anyone facing an evasion allegation, their management and advisers.

Why does it matter?

Criminal and financial exposure requires specialist assessment of the case stage, sanctions and any available settlement.

Three to five yearsOne to three times VATConditional reconciliation

Current text

Any person who commits any of the cases of tax evasion as stipulated in Article 63 of this Law shall be punished by imprisonment for a period of not less than three years and not exceeding five years, and by a fine not less than the amount of the Tax due and not exceeding three times the amount of Tax due. The offender or multiple offenders are jointly liable for the payment of the Tax due. The penalty stipulated in paragraph A of this Article shall be doubled if the offence is repeated within three years from the date of final conviction. Without prejudice to the criminal responsibility of a natural person, a legal person shall be criminally punished by double the maximum fine prescribed in Paragraph A of this Article if any of the Tax evasion crimes, as stipulated in this Law, is committed in his name, on his behalf or for his benefit. The Court may order the confiscation of means of transport, tools, materials and devices used for tax evasion crimes, except for ships and aircraft, unless they have been specifically, by the knowledge of their owner, prepared or used for evasion purposes. Cases of Tax evasion crimes shall be summarily reviewed when referred to the courts. In all cases, the crime of Tax evasion is considered an offense against honor and honesty. It is not permissible to file a criminal case or take any action for Tax evasion crimes except at the request of the Minister or his authorised delegate. Without prejudice to any more severe penalty stipulated in any other law, some or all of the crimes stipulated in this Article may be reconciled. The Minister or his authorised delegate, upon the written request of the accused or his agent, may accept conciliation in cases of Tax evasion crimes before the lawsuit is filed or during the hearing and before the judgment is given if the accused or his agent pays an amount equivalent to the minimum fine for the crime as well as the value of the Tax. The reconciliation shall result in the termination of the criminal case.

Application steps

  1. 1

    Have substantive statements reviewed by a qualified adviser.

  2. 2

    Preserve evidence and its document chain.

  3. 3

    Check settlement conditions, timing and competent authority.

Connected provisions

Direct legislative link

Law — Article (63)

Cases of tax evasion

Penalties apply only once the act is identified as a listed evasion case and its elements are proved.

Open connected Article

Official guides and tools

Official text

Value Added Tax Law

Article (64)

Official guide

VAT General Guide

Practical guidance relevant to the Article

Illustrative example by Madar

Reconciliation is not automatic

Offering payment does not by itself end a criminal case. A written request, competent acceptance, payment of the minimum fine plus the VAT due, and timing before a final (irrevocable) judgment must all be satisfied.

Questions to help you apply it

  • What act and stage are involved?
  • Is statutory settlement available and are its conditions met?