The draft executive regulations of the White Land Fees System revealed substantial updates that regulate the mechanisms of applying fees and land valuation, stressing that any urban area or allocation that is not explicitly mentioned in the urban area maps and detailed plans issued by the competent authorities will not be considered.

The draft Executive Regulations of the White Land Fees System released by the Ministry of Municipalities and Housing on a consultation platform for opinions. The draft Executive Regulations of the White Land Fees System, which the Ministry of Municipalities and Housing put on a survey platform for opinions on it, clarified that all land uses, without exception, are subject to the application of fees, in accordance with the provisions of the system, ensuring comprehensiveness and fairness in different regions of the Kingdom.

The draft Executive Regulations of the White Land Fees System

Land Assessment and Evaluation Committee

<According to the draft, the Ministry of Municipalities and Housing shall form one or more committees by a decision of the minister to assess the value of land subject to the fee. The committee must include at least three members, including appraisers licensed by the Saudi Board of Certified Appraisers.

The rules of the committee shall be determined by the Ministry of Municipalities and Housing. <The rules and procedures of the committee's work, the criteria used in the assessment, as well as the remuneration of its members, shall be determined by a decision of the minister in coordination with the Ministry of Finance. Experience in real estate valuation and knowledge of land development procedures is required for all committee members, and the term of membership is three years, renewable.

Calculating Service Availability Factor

<The draft indicates that the availability and accessibility of public services will be determined based on weights assigned to each service, according to its importance to the development of the land. These weights will be calculated within a special formula adopted by the Ministry to estimate the basic value of the land, with the possibility of periodic review.

Five criteria for applying fees

The draft clarifies that the imposition of fees on white land is based on five main criteria:

The draft clarifies that the imposition of fees on white land is based on five main criteria:

• The existence of a gap between supply and demand in the market.
• Inflated real estate prices.
• Lack of supply of developed land.
• Monopolization of white land and lack of development.
• Ratio of white land within the urban area.

Flexible mechanisms for calculating fees

The regulation provides for three mechanisms for calculating the fee rate:

• Base rate: 2.5% of the land value and applied uniformly.
• Annual Percentage Increase: Can be added incrementally annually over a specified period.
• Variable Rate: Proposed by a specialized technical team and based on market indicators to address unbalanced price changes, whether by increasing or decreasing.
• The total fee percentage is calculated by a formula that combines these three percentages.

Setting geographic ranges and areas

The Minister of Municipalities and Housing determines the geographic ranges subject to the fee in each city, in addition to determining the fee rate, land uses, minimum areas, and the total area of land subject to the fee.

Ministry of Municipalities and Housing also conducts reviews of the Ministry of Municipalities and Housing to determine the geographic ranges and areas of land subject to the fee. The Ministry also conducts periodic reviews to update the status of each geographical scope, and decides whether to continue charging fees, modify the subject area, or suspend the application.

Ministry also conducts periodic reviews to update the status of each geographical scope.

Uniform billing dates and payment details

<The law gives the minister the authority to standardize the dates for issuing annual fee invoices in each city. It also specifies the amounts due in the event of a change in the timing of invoices, as well as the periods required to complete the development or construction of the land.

To be subject to the application of the fee, the land must be an open space, developable or buildable, within a feeable area, with an area or total land owned by the same person of not less than 5,000 square meters, and the use of the land must be within the specified uses.

Situations where the application of the fee ceases

The application of the fee is suspended in four cases:
• The absence of any of the conditions for the application of the fee.
• A barrier to the owner's action, provided the owner did not cause it.
• A barrier that prevents the issuance of necessary licenses or approvals, provided the taxpayer did not contribute to it.
• Completion of the development or construction of the land within the statutory period.
<The Minister can suspend the fee for a specific period of time upon completion of the development, provided that it does not conflict with the dates of issuing invoices. The taxpayer can also be granted an additional period of time to complete the development according to the nature and size of the land, and in case of non-completion, the due fees will be collected.

Minister can suspend the fee for a specific period upon completion of the development.

Justice and control procedures

. The draft confirmed that the minister will take the necessary measures to ensure fairness of application and prevent evasion, including standardization of standards, verification of the correctness of the data submitted, and considering all communications as producing their legal effect when notified electronically or through official means.

The draft confirmed that the minister will take the necessary measures to ensure fairness of application and prevent evasion. The declaration of land subject to fees shall be issued, including the date of the declaration, the name of the area, the geographical map, the deadline for submitting documents, as well as the address of the electronic portal and the required contact information.

The declaration of land subject to fees shall include the date of the declaration.

Obligations of the taxpayer and payment of the invoice

The regulation requires taxpayers to pay the fees within 90 days from the date of notification, whether the notification is done electronically or through any reliable means, and all details of the fee are attached to the invoice such as name, ownership data, land location, fee percentage, payment date, and the right of grievance.

The regulation does not exempt the delay from the taxpayer's obligation to pay the invoice. <Late submission or payment does not exempt from fines, and fees and fines can be collected retroactively. The Ministry collects the amounts due using any means it deems appropriate, including cooperation with the private sector.

Common fees and collection methods

<If the land is owned by more than one party, whether individuals or legal entities, each party is obliged to pay its share of the fee. The collected amounts are used to finance housing projects, as determined by the Ministry.

Coordination and implementation of the regulation

The draft indicated that the ministry will continue to coordinate with the concerned authorities to implement the regulation, provided that executive instructions will be issued by the minister to ensure the implementation of the provisions of the regulation.

The draft indicated that the ministry will continue to coordinate with the concerned authorities to implement the regulation. It should be noted that the Ministry of Municipalities and Housing has released the draft of the updated executive regulations on the National Competitiveness Center's "Explore" platform, inviting specialists and interested parties to provide their opinions and comments during the public consultation period."

The draft indicates that the Ministry will continue to coordinate with the concerned authorities to implement the system, and that executive instructions will be issued by the Minister to ensure the implementation of the provisions of the regulations.