The draft amendments to the executive regulations for the real estate transactions tax was approved by Ministerial Resolution No. (1331) dated 01/07/1445 AH.
the most major amendments of which include expanding the scope of the exceptions mentioned in Paragraphs (16) and (17) of Article Three (A) to transactions that It takes place between companies and investment funds established in the Kingdom, and is detailed as follows:
Amending subparagraph (16) of Article Three (A):
Real estate transaction by a natural person to a company or investment fund established in the Kingdom, and this person owns “directly or indirectly” all of the company’s shares, shares, or fund units. This includes the case where the full ownership percentage of natural persons in the property and the entity disposing of it matches, provided that no change occurs. In the percentage of ownership of those persons in the entity disposing of it for a period of no less than five years from the date of the real estate transaction.
Amending subparagraph (17) of Article Three (A):
A real estate transaction between a company and another institution in the Kingdom, one of which “directly or indirectly” owns all of the other company’s shares or stakes, a real estate transaction between a company and an investment fund established in the Kingdom and the company owns “directly or indirectly” all of the fund’s units, and a real estate transaction between Companies or investment funds established in the Kingdom whose shares, shares, or units are all owned “directly or indirectly” by the same persons. In all cases, all shares of the disposed company, shares, or units of the disposed fund must remain owned “directly or indirectly.” “Indirect” to the same persons for a period of no less than five years from the date of the real estate transaction.
The amendments also included the addition of a duplicate article stating that the interpretive decisions and published guidelines are binding interpretations of ZATCA, which is consistent with the recent amendments that were adopted in the other executive regulations.
Adding Article Eleven (bis):
1- ZATCA works to spread awareness among registrants and strengthen the degree of their voluntary commitment, and issues the necessary guidance manuals or tax bulletins to help them fulfill their duties.
2- ZATCA - at its discretion - may issue an explanatory decision to clarify the tax treatment of any transaction in accordance with the provisions of the regulations. This shall be in the form of an explanatory decision issued to whoever submits the application or published to the public. The explanatory decision indicates the period to which it applies, and the issuance of the explanatory decision shall be in accordance with the provisions and procedures stipulated Determined by the Authority.
3- ZATCA is committed to the content of the interpretations contained in the guidelines, tax bulletins, or explanatory decisions in accordance with paragraphs (1, 2) of this Article when applying the regulations to the periods following the issuance, publication, or amendment of these guidelines, tax bulletins, or explanatory decisions, without This extends to the periods prior to its issuance, publication or modification.
4- ZATCA must take into account compliance with the provisions of the regulations when issuing interpretive decisions.
5- The provision of Paragraph (3) of this Article does not apply in the following cases:
a. Actual facts, activities or transactions differ from those specified in the guidelines, tax bulletins or interpretive decisions.
B. Omission or misrepresentation of material facts.
C. Transactions that do not meet the assumptions or requirements contained in the guidance manuals, tax bulletins, or explanatory decisions.
6- The purpose of any document issued by ZATCA in accordance with this article is to clarify how the provisions of the regulation are applied to a specific transaction that includes a specific set of facts, and it is not intended to give ZATCA to provide any exception, exemption, privilege, discount, or any other advantage except what is permissible under Provisions of the regulations.
Source:
Umm Al-Qura newspaper
https://uqn.gov.sa/details?p=23465