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The Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, issued several royal orders on Friday related to economic affairs within the Kingdom.
The Saudi Press Agency “SPA” stated that King Salman ordered “to exempt from value added tax the real estate supplies made after the application of the provisions contained in this order.”
He added: “It is also an order to reimburse what is paid after the application of the provisions contained in this order in terms of value added tax on inputs for licensed real estate developers, in accordance with the redemption controls and related regulations. approved by the Minister of Finance, Chairman of the Board of Directors of the General Authority of Zakat and Revenue in coordination with the Minister of Housing and approved The Minister of Finance, Chairman of the Board of Directors of the General Authority of Zakat and Revenue, is a list – regularly updated – with the names of those developers.
And the agency continued: “Impose a tax in the name of (real estate alienation tax) on real estate deliveries that are made after the application of the provisions contained in this order, at a rate of (5%) of the value of the real estate offer, obtained by documenting the sale of the real estate “.
The Custodian of the Two Holy Mosques also ordered the Minister of Finance and the President of the General Authority of Zakat and Revenue to determine the real estate supplies that are exempt from value added tax and are subject to real estate tax.
Another royal decree included that “the State bears the real estate transaction tax of no more than one million rials on the purchase price of the first home for the citizen. The Minister of Finance and President of the Board of Directors of the General Authority del Zakat and Income will approve the controls and procedures necessary for this. ”
“The General Zakat and Revenue Authority is responsible for administering and collecting the real estate alienation tax,” said SPA. “The Minister of Finance, President of the Board of Directors of the General Authority of Zakat and Revenue, issues the necessary decisions, including the determination of the provisions that apply to this tax in terms of the value-added tax system.” .
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