The General Authority for Zakat and Income received more than 23 thousand applications to register a real estate pledge within the real estate disposal tax service during the last ten days, in various regions. The authority said: The real estate disposal tax is one of the electronic services that enables taxpayers to register their properties in the real estate disposal tax before completing the real estate emptying process or documenting the contract. It also enables the taxpayer to know the extent to which his property is subject to tax, while issuing an invoice for payment of the amount due.
The real estate disposal tax began on October 4 this year, according to the Royal Decree exempting real estate sales from the value-added tax of 15% and imposing a real estate disposal tax at a rate of 5%, of the value of the property that is to be sold or transferred possession, regardless of its condition or form, and includes «land and what It is constructed, constructed or built upon, and paid before or during real estate evacuation or contract documentation.
Earlier, the Authority launched the Simplified Guide to Real Estate Disposal Tax, which contains a number of concepts about the real estate tax, which was recently announced under the Royal Decree No. (A / 84) dated 2/14/1442 AH, aimed at empowering citizens to Owning their homes and stimulating the residential and commercial real estate sector. “Zakat” clarified that violating the provisions of the real estate disposition tax leads to 3 types of financial penalties, which are imposed on the seller who is responsible for supplying the value of the tax to the Authority. As for the cases excluded, the Saudi General Authority for Zakat and Income identified in the executive regulations of the new real estate disposal tax 13 cases in which an exception is made from paying the 5% tax.