Business Regulations Brief

ZATCA Encourages Utilization of Real Estate Transactions Tax Platform Services

Real Estate Transactions Tax Platform Services


The Zakat, Tax, and Customs Authority (ZATCA) has issued a call to all parties involved in real estate transactions to utilize the Real Estate Transactions Tax (RETT) Platform available on its website. This digital platform is designed to streamline the process of completing real estate transactions, offering a suite of services that automate and facilitate the necessary procedures for taxpayers.

Key features of the platform include a new service for registering real estate transactions, which allows for the registration of properties under the RETT service before the completion of the real estate emptying process or contract documentation. This feature is instrumental in determining the portion of the property subject to the real estate transaction tax related to anticipated sales.

Additionally, the platform provides tools for contesting the real estate transaction tax, updating tax requests, amending property registration requests, and verifying the status of registration requests. It also offers the capability for conveyors to cancel registration requests with the RETT service, check the tax status of properties, and process tax refunds in case of cancellation or amendment in compliance with relevant laws and regulations.

ZATCA encourages conveyors to consult the detailed user guide available on its website, which offers an overview of the platform and detailed instructions to maximize its use for efficient tax management.

The Real Estate Transactions Tax is applied at a rate of 5% on the transfer of property ownership through sale, trade-off, assignment, donation, or similar methods. There are specific exemptions, such as transfers between a natural person and an affiliated company or investment fund, provided no change in ownership percentage occurs for at least five years as stipulated in the Real Estate Transaction Tax Implementing Regulations.

This initiative is part of Saudi Arabia's efforts to facilitate real estate transactions and promote compliance with tax obligations, aligning with the goals of Saudi Vision 2030 to enable citizens to own their first home. The state supports first-home buyers by covering the RETT for purchases up to one million riyals, underscoring the commitment to housing accessibility and economic development.