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Value Added Tax (VAT), in general, is no longer applicable to the sale and disposal of property, except in certain circumstances where both VAT and RETT can apply on the same transaction.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
