Real Estate Transaction Tax (RETT) was introduced in the Kingdom of Saudi Arabia (KSA) with effect from 4 October 2020 on supplies of land and property (including sales, assignments, transfers, and similar activities), subject to some exceptions. The applicable rate is 5% of the value of the land and property (and rights thereto).
Value Added Tax (VAT), in general, is no longer applicable to the sale and disposal of property, except in certain circumstances where both VAT and RETT can apply on the same transaction. Instead, the real estate supply will be treated as VAT exempt wherein related tax credits cannot be recovered through the VAT return.
Source Deloitte
Latest Posts in "Saudi Arabia"
- Saudi Arabia Seeks Feedback on Economic Substance Rules for Special Economic Zones
- New VAT Rules: When Marketplaces Must Account for VAT Instead of Individual Sellers
- Saudi Arabia VAT: New Deemed Supplier Rules for Electronic Marketplaces Effective January 2026
- Saudi Arabia Issues Bylaws Establishing Tax and Regulatory Framework for Special Economic Zones
- Saudi Arabia Issues Implementing Regulations for Special Economic Zones, Introducing Tax and Customs Incentives
