Exceptions and exemptions on Real Estate Transactions VAT. The General Authority for Zakat and Income said that the real estate tax, which was issued by royal order on 2nd October 2020 at 5% of the value of the real estate supply, will include a number of exceptions.
Exceptions and exemptions on Real Estate Transactions VAT
The authority clarified that among the exceptions that will be included in the tax are the distribution and transfer of real estate ownership among the heirs as part of the distribution of the estate, and the gift of real estate free of charge to the husband or wife or to one fo the relative up to the second degree (father, mother and children).
GAZT added that the exceptions also included transferring ownership of the property free of charge to a charitable organization or to a licenced charitable association. And other exceptions that will be detailed in the legislation related to the real estate tax.
The residential real estates’ rents will be exempted from Value added tax and commercial rents will be subject to a 15% tax.
The Authority menitioned that guides on exclusion and other updates will be issued later.
More from Riyadh Xpress
Non-Saudis will be allowed to enter from 15th September|Saudi Arabia
Elephant Mountain | Al Ula | Saudi Arabia
Al Ula | Fort | Old Town | Discover Saudi Arabia
Stay Safe by following precautionary measures given by the government
- Free movement with taking care of precautionary measures given by the government. Cautiously we returned to normal life.
- Staying at home can be very boring if you don’t have anything to do, we have made a list of things to do here.
- Buy protected mask: Click Here
Finally, follow Riyadh Xpress’s:
 |  |  |
In addition, check out the latest articles by Riyadh Xpress
- Firstly, King Salman urged the world to respond to the human crises causes by Covid-19: Click Here.
- Secondly, Social Distancing Measures implemented in supermarkets: Click Here.
- Thirdly, the latest penalties on Iqama: Click Here.
- Fourthly, Disabled parking violation/fine in Saudi Arabia: Click Here.
- Lastly, hackers attack again to get your personal data: Click Here.
Check out the most viewed articles
- Firstly, one riyal shop in Riyadh: Click Here.
- Secondly, 5 Riyals Mall in Riyadh: Click Here.
- Thirdly, Riyal al Barakah: Click Here.
- Lastly, 20 new changes in Saudi Arabia in 2020: Click Here.