Real Estate Transaction Tax (RETT)

Contents

1. Introduction

1. 1.1. Implementation of the Real Estate Transaction Tax Law in the Kingdom

2. 1.2. What is the Real Estate Transaction Tax?

3. 1.4. This Guideline

2. Definitions of Main Terms Used

3. Real Estate Tax Entitlement

1. 3.1. Imposing Real Estate Transaction Tax

2. 3.2. Tax Base for Calculating the Tax Due

3. 3.3. Tax Due Date

4. 3.4. The Payment of the Due Tax Date

5. 3.5. Special cases of the date of payment of tax due

6. 3.6. The Individuals Obligated to Pay the Tax

4. Real Estate Transaction Tax Exclusions

1. 4.1. We address those exceptions in more detail as follows

2. 4.2. The transaction is subject to the RETT only once

5. Implementation Mechanism of Real Estate Transaction Service

6. Fines and Penalties

1. 6.1. Fines

2. 6.2. Penalties

7. Objection to the Authority's Decisions

8. Powers of the Zakat, Tax and Customs Authority

1. 8.1. Recalculation of the tax due

2. 8.2. Issuing the decisions, rules, and procedures necessary to implement the Regulation

3. 8.3. The Authority's Right to Collect Tax

9. Obligations of the Real Estate Disposer

1. 9.1. Registration with the Authority's platform

2. 9.2. Provide all necessary information to calculate the tax due

3. 9.3. Payment of Tax Due

4. 9.4. Completion of transfer procedures at the competent authority (notary public)

5. 9.5. Obligations of the specified individuals in Article 7 of the Regulation when disposing on behalf of third parties

10. Tax Treatment for Off-plan Sale Products

1. 10.1. Business-to-consumer (B-TO-C) supplies made after the construction phase of the property until the payment of the property's value and the cost of financing

2. 10.2. Supplies from business to business (B-TO-B) carried out during the development phase up to the construction of the property under Istisna' Contracts

11. Request for Ruling

12. FAQs