Article 14 of the Saudi Real Estate Transaction Tax Law
المادة 14 من نظام ضريبة التصرفات العقارية
The article treats as tax evasion the submission of forged or incorrect documents or information intended to evade tax, or any other act with that intent, and places on the taxpayer the burden of proving there was no intent.
Official text (Arabic)
This article has not been amended since the law was issued.
يعد ما يأتي تهرباً ضريبياً:
1- تقديم مستندات أو معلومات أو إفادات أو سجلات مزورة، أو مصطنعة، أو غير صحيحة، أو ما في حكمها؛ تتعلق بالتصرف العقاري، وذلك بقصد التهرب من سداد الضريبة المستحقة. ويقع على عاتق الخاضع للضريبة عبء إثبات انتفاء القصد.
2- ارتكاب أي فعل آخر بقصد التهرب من سداد الضريبة المستحقة.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 14 explained in plain English
This article defines tax evasion under this Law and gives two forms of it:
- Incorrect documents and information: submitting forged, fabricated or incorrect documents, information, statements or records, or the like, relating to the real estate transaction, with the intent of evading payment of the tax due.
- Any other act: committing any other act with the intent of evading payment of the tax due. The list is therefore not closed, and the test is the intent to evade.
Burden of proof: in the first form, the burden falls on the taxpayer to prove that there was no intent. That is, if incorrect documents or information were submitted, the taxpayer must prove that he did not intend to evade; the Authority does not have to prove that he did. This is an important rule for anyone who submits data about a real estate transaction, who should make sure it is correct.
Evasion carries the consequences set out in Article 15, which punishes tax evasion with a fine of up to three times the amount of tax evaded, and applies the same penalty to anyone proven to have participated in the evasion, helped with it or facilitated it, without prejudice to any more severe penalty provided in another law. It is preceded by Article 13, which requires the Authority to issue guides to help the parties to transactions meet their duties.
Anyone accused of tax evasion, or who has submitted data later found to be wrong, should consult a lawyer specialized in real estate and tax matters immediately.
Practical example
Sami submitted to the Authority a sale contract for a building in Dammam showing a value lower than the actual price, and attached a fabricated document supporting that value in order to reduce the tax. This act falls within the forms of tax evasion, and Sami bears the burden of proving that he did not intend to evade.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentCriminal Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Criminal Law lawyers
Lawyers who handle this kind of case
Ibrahim Al Salem Law Firm
Active contributor
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Frequently asked questions about Article 14 of the Saudi Real Estate Transaction Tax Law
What counts as evasion of the real estate transaction tax?
Submitting forged, fabricated or incorrect documents, information, statements or records relating to the transaction with the intent to evade, or committing any other act with the intent to evade payment of the tax.
Who must prove the intent to evade?
Where incorrect documents or information were submitted, the burden falls on the taxpayer to prove there was no intent.
What is the penalty for tax evasion under this Law?
Article 15 provides a fine of up to three times the amount of tax evaded, without prejudice to any more severe penalty in another law.
More articles on Penalties for Evading Real Estate Transaction Tax
- Article 6
The article bars any step or agreement creating sham or concealed dispositions that cause the tax not to be paid correctly, and requires the tax to be calculated and collected on the real disposition.
لا يجوز لأي شخص ذي علاقة بواقعة التصرف العقاري القيام بأي إجراء أو إبرام أي اتفاق يترتب عليه إنشاء تصرفات صورية أو مستترة؛ بما يؤدي إلى عدم سداد الضريبة المستحق
- Article 15
The article sets the penalties: a fine of up to three times the tax evaded, a late-payment fine of 2% per month capped at 50% plus 1% if the tax is adjusted, a general fine for other violations, and penalties for notaries.
دون إخلال بأي عقوبة أشد ينص عليها أي نظام آخر، يطبق على مخالفي النظام أو اللائحة ما يأتي: 1- غرامة لا تتجاوز ثلاثة أمثال قيمة الضريبة محل التهرب وذلك في حالة ال
- Article 16
The article makes the Authority responsible for imposing the Law's penalties under a classification of violations set by the Board that respects proportionality, by decision of the Governor or his delegate, without preventing collection of the tax.
1- تتولى الهيئة إيقاع العقوبات المنصوص عليها في النظام وفقاً لتصنيف يضعه المجلس للمخالفات وما يقابلها من عقوبات، ويُراعى فيه التناسب بين المخالفة والعقوبة. 2- ت
- Article 18
The article assigns monitoring, inspection and detection of violations of the Law and the Implementing Regulations to employees named by decision of the Governor, gives them the necessary powers, and refers their working procedures to the Implementing Regulations.
يتولى موظفون، يصدر بتسميتهم قرار من المحافظ، الرقابة والتفتيش وضبط مخالفات أحكام النظام واللائحة. ولهم جميع الصلاحيات اللازمة لأداء مهماتهم. وتحدد اللائحة إجراء
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.