Real Estate Transaction Tax to become 'Real' in the Kingdom of Saudi Arabia - Cabinet approves the Law

  

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With Saudi Arabia's Real Estate Sector being a cornerstone of its Vision 2030 Economic Reforms, it was imperative for the Kingdom to have a robust structure in place.  The Kingdom's cabinet has accordingly approved the Real Estate Transaction Tax Law ('RETT Law'), which will come into effect after 180 days from its official gazette, followed with implementing regulations incorporating views to facilitate the Sector.

 

The Implementing Regulations earlier did signify the rate of 5% tax, and the law would now poise to correctly shape how "Property Deals" are to be conducted across the kingdom. The intent of the law is clearly to enhance transparency, encourage investments, and to ascertain the correct applicability of tax as well as what is within and outside the purview of real estate transactions.

 

It may also exhibit other provisions facilitating the sector, and this will certainly stimulate both domestic and international interests. Effectively, this brings certainty for a sustainable growth in the Real Estate Sector.

More insights to follow soon on the publication of this Law.

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