This webinar addresses:
•When was the application of real estate transaction tax started?
•The most important key terms for real estate transaction tax
•The registration mechanism
•Steps for entitlement to real estate transaction tax
•Most important exceptions
•Examination of the differences between value-added tax and real estate transaction tax
•Common questions and answers

The most common questions

Is there a time limit to the registration of real estate transaction tax?

There is no limit to registering in the real estate transaction tax. All transactions are subject to taxation with certain exemptions according to the list of exceptions specified in the previous question.

Is it necessary to register with the General Authority for Zakat and Income to file a tax return and pay it?

Real estate transaction tax is an operational tax, and each transaction is registered through the designated portal in the authority without the need to submit a registration application with the General Authority for Zakat and Income. Accordingly, what applies to zakat and taxes, such as registering or filing periodic declarations, does not apply to them.

Will I be issued a special registration certificate for real estate transaction tax?

There is no registration certificate in the real estate transaction tax, it is an operational tax and is not defined by a criterion of subjection according to the volume of activity and sales. All real estate transactions are subject to taxation except what is exempted according to the regulations.

In case of early payment, is there any applicable tax in the event of releasing the mortgage for the customer?

A real estate transaction tax is imposed on any real estate transaction after the date of October 4, 2020, and that includes:

Real estate disposition, any legal action that transfers ownership of or possession of a real estate, including, without limitation, and contracts whose subject matter is the transfer of the right of usufruct or the right of a long-term lease. The regulations include exceptions, such as:

Disposing of real estate temporarily to use it as collateral for financing or credit, unless execution is made on the real estate subject of the guarantee or credit by permanently transferring it to the financier or others.