The Minister of Finance, Mohammed bin Abdullah Al-Jadaan, Chairman of the Board of Directors of the Zakat, Tax and Customs Authority, approved a number of Amendments to the executive regulations of the real estate transaction tax, where the amendments included exceptions, most notably the disposal of the property by any person to a real estate developer licensed to carry out off-plan sales and leasing activities, provided that the property is dedicated to one of the off-plan sales projects.
Amendments to the executive regulations of the real estate transaction tax. The Zakat, Tax and Customs Authority explained that other exceptions include the disposal of real estate by a natural person to a company in which he owns all the shares or shares, provided that there has been no change in his ownership percentage for a period of not less than 5 years, and the disposal of the product between companies whose shares or shares are all owned by the same person, provided that there has been no change in the ownership percentage in the disposed company for a period of not less than 5 years.
Other exceptions include the disposal of the product between companies whose shares or shares are all owned by the same person. The exceptions include the disposal of real estate without consideration to a company incorporated in the Kingdom whose shares or shares are all owned by an endowment or charity, provided that there is no change in the ownership percentage of the disposed company for a period of 5 years.
The amendments included an exception to this rule.
<The amendments included a new exception related to restoring the property to its previous owner due to the cancellation of the notarized real estate transaction by mutual consent between the parties, within a period not exceeding 90 days from the date of notarization, provided that there is no change in the description of the product and full restitution of its value.
It is noteworthy that real estate transaction tax is 5% of the total value of the real estate transaction whereby the ownership of the property is transferred from one person or establishment to another, whether through sale, exchange, gift and the like, with some exempted transactions in accordance with the provisions of the regulation.
Any real estate transaction must be registered on the dedicated platform, indicating the exact data of the property and specifying the exception related to the real estate transaction, before it is emptied at the notary offices or the authorized notary.
