A number of members of the Shura Council called for studying the implementation of the decision to exempt real estate supplies from value-added tax (15%), and imposing a real estate disposal tax (5%) retroactively.
A member of the Shura Council, Faisal Al-Fadil, called on the General Authority for Zakat and Income to coordinate with other competent authorities, to consider the possibility of including the royal order exempting real estate supplies from the added tax retroactively, and replacing them with real estate tax at a rate of 5%, especially since the period is short (3 months). The added tax was raised to 15% in early July.
In turn, Abdul Rahman Al-Rashed, a member of the Council’s Finance Committee, urged the Zakat and Income Authority to prepare an integrated study with numbers, to examine the feasibility of applying the royal order to real estate supplies that took place before the date of October 4, 2020, especially since the past three months have seen Decrease in real estate supply.
For his part, the head of the Shura Finance Committee, Saleh Al-Khalili, stated that if there is a study in this regard, the competent authorities study the cases that have taken place during the past three months independently, and submit specific recommendations to the High Commissioner.
It is noteworthy that the Custodian of the Two Holy Mosques King Salman bin Abdulaziz recently issued a royal order Real estate supplies are exempt from value added taxAnd imposing a tax in the name of (real estate disposal tax) on real estate supplies at a rate of 5%, obtained upon documenting real estate disposal.