Saudi Arabia: Approved amendments to the RETT Implementing Regulations
22 February, 2022
In brief
The Board of Directors of Zakat, Tax and Customs Authority (‘ZATCA’) has approved the amendments/additions to various Articles to the Implementing Regulations of Real Estate Transaction Tax (“RETT”).
These amendments will take effect as of 18 February 2022.
The announcement is published on the official gazette and can be accessed here. The approved amendments are available only in Arabic language at the moment and can be accessed here.
In detail
Earlier during December 2021 last year, ZATCA published a draft of proposed amendments to certain Articles to the Implementing Regulations of RETT for public consultation on the National Competitiveness Centre platform.
The Board of Directors of ZATCA on 08/07/1443 AH (corresponding to 09 February 2022) approved, by adopting Ministerial decision No. 1429, all the proposed amendments issued earlier during December 2021 without any changes.
Summary of amendments:
Reference to the Article |
Approved text |
Article 1 - Definitions |
|
Article 3 (A) - Exclusions |
|
Article 4 - Due date of tax |
|
PwC news alert issued earlier on proposed changes can be accessed here.
"Through the amendments, ZATCA extends exclusion from RETT application in certain cases and also clarify the due date of RETT payment in cases e.g. sale of map etc."
The Takeaway
Taxable persons are recommended to review the approved amendments and ensure implementation readiness from the effective date (i.e. 18 February 2022).
In addition, the changes should be carefully considered while disposing a real estate property and planning restructure or contemplating a transfer of real estate properties to ensure compliance with the amended provisions of the RETT Regulations.
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