Article 15 of the Saudi Real Estate Transaction Tax Law
المادة 15 من نظام ضريبة التصرفات العقارية
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 التهرب الضريبي. ويعاقب بالعقوبة نفسها أي شخص يثبت اشتراكه في التهرب الضريبي، أو مساعدته عليه أو تسهيله له.
2- غرامة تعادل (2%) من قيمة الضريبة غير المسددة عن كل شهر أو جزء منه لم تسدد عنه الضريبة، وبما لا يتجاوز (50%) من قيمة الضريبة غير المسددة، ويبدأ احتساب الغرامة من اليوم التالي لانتهاء المدة المحددة لسداد الضريبة المستحقة، وتفرض غرامة إضافية تعادل (1%) من قيمة الضريبة غير المسددة عن كل شهر أو جزء منه في حال تم تعديل قيمة الضريبة المستحقة من قبل الهيئة، ويبدأ احتساب الغرامة بعد مضي (ثلاثين يوماً) من تاريخ الإشعار بالتعديل.
3- دون إخلال بما تضمنته الفقرات (1) و(2) و(4) من هذه المادة، يعاقب كل من يخالف أي حكم من أحكام النظام أو اللائحة بغرامة لا تزيد على قيمة الضريبة المستحقة أو (خمسين) ألف ريال، أيهما أكثر.
4- يعاقب كل من يخالف أحكام النظام ممن يتمتعون بصلاحية توثيق التصرفات العقارية - وفقاً للأنظمة السارية في المملكة - بموجب أحكام نظام التوثيق.
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 15 explained in plain English
This is the penalties article, applied without prejudice to any more severe penalty provided in another law. It contains four penalties:
- Tax evasion: a fine of up to three times the amount of tax evaded. The same penalty applies to anyone proven to have participated in the evasion, helped with it or facilitated it.
- Late payment: a fine equal to 2% of the unpaid tax for each month or part of a month, up to a maximum of 50% of the unpaid tax. It is calculated from the day after the end of the period set for payment. If the Authority adjusts the amount of tax due, an additional fine of 1% of the unpaid tax applies for each month or part of a month, calculated from the end of thirty days after the date of notice of the adjustment.
- Other violations: without prejudice to paragraphs 1, 2 and 4, anyone who violates any provision of the Law or the Implementing Regulations is punished by a fine not exceeding the amount of tax due or SAR 50,000, whichever is greater.
- Notaries: a person with the authority to notarize real estate transactions who violates the provisions of the Law is punished under the provisions of the Notarization Law.
This article complements Article 14, which sets out the forms of tax evasion, and Article 16, which makes imposing penalties the responsibility of the Authority under a classification of violations set by the Board that takes proportionality into account, by decision of the Governor or whoever the Board authorizes, and provides that imposing a penalty does not prevent collecting the tax due. The fine is added to the tax and does not replace it.
Anyone who has been fined and believes the fine is incorrect should consult a lawyer specialized in real estate and tax matters.
Practical example
The tax due from Ali was SAR 50,000, and he paid it two months and ten days after the end of the set period. Because the fine is calculated for each month or part of a month, three months are counted at 2% per month, which is 6% of SAR 50,000, or SAR 3,000, in addition to the tax itself.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 15 of the Saudi Real Estate Transaction Tax Law
What is the late-payment fine for real estate transaction tax?
2% of the unpaid tax for each month or part of a month, up to a maximum of 50% of it, calculated from the day after the end of the payment period.
What is the penalty for evading the real estate transaction tax?
A fine of up to three times the amount of tax evaded. The same penalty applies to anyone who participates in the evasion, helps with it or facilitates it.
What is the fine for violating other provisions of the Law?
A fine not exceeding the amount of tax due or SAR 50,000, whichever is greater.
Does paying the fine cancel the tax?
No. Article 16 provides that imposing penalties does not prevent collecting the tax due.
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 14
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.
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 الته
- 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.