{"id":94521,"date":"2025-02-18T00:00:00","date_gmt":"2025-02-18T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2025\/02\/18\/rett-laws-executive-regulations-up-for-public-consultation\/"},"modified":"2025-02-18T00:00:00","modified_gmt":"2025-02-18T00:00:00","slug":"rett-laws-executive-regulations-up-for-public-consultation","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2025\/02\/18\/rett-laws-executive-regulations-up-for-public-consultation\/","title":{"rendered":"Rett law\u2019s executive regulations up for public consultation"},"content":{"rendered":"

<\/strong>Zatca is out with executive regula<\/strong>tions on the <\/strong>Real Estate Transaction Tax (Rett) law<\/a><\/strong>(pdf)<\/a><\/strong>, which will be up for public consultation on Istitlaa<\/a> until Saturday, 15 March. The proposed regulations aim to clarify tax scope and mechanisms for tax payment and collection, while also outlining exemptions criteria, procedures for tax refunds, as well as Zatca\u2019s authority to re-evaluate tax obligations. <\/p>\n

The details:<\/strong> All real estate transactions will be subject to a 5% tax, regardless of the transacted property\u2019s status, form, or use at the time of transfer under the draft law. It applies whether the transaction involves the entire property or a portion of it, whether the property is individually owned or jointly owned, and whether the property is completed, under construction, or off-plan. The 5% tax also applies when real estate transactions are settled via share swaps.<\/p>\n

The new regs also lay out mechanisms for taxation in usufruct agreements that extend <\/strong>past 50 years<\/strong>, whereby taxes will be calculated in terms of fair market value, or the agreed-upon consideration \u2014 whichever is higher. Taxes will also apply to transactions relating to build-own-operate-transfer (BOT) projects, with calculations based on the market value of the project on the ownership transfer date. <\/p>\n

Tax exemptions can be dished out based on the following criteria: <\/strong><\/p>\n