The draft amendments to the executive regulations for the real estate transaction tax was approved by Ministerial Resolution No. (1429) dated 07/08/1443 AH, and here are the most prominent amendments :
- Amending the degree of relatives who are excepted from paying the tax in cases of a gift, to reach the third-degree instead of the second-degree, provided that ownership of the property should not transferred for a period of three years.
- The transaction of transferring ownership of the property based on a legitimate will documented by the Ministry of Justice will be exempt from the real estate transaction tax, with the cancellation of any condition related to inheritance.
- Amending the tax payment date for off-plan sales to be on or before the date of certification at notary public or legally accredited certification body., without the necessity of paying the tax before or upon signing the contract or sale agreement between the buyer and the real estate owner.
The effective date of the amendment will be starting on Friday, February 18, 2022.
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