Article 4 of the Saudi Real Estate Transaction Tax Law
المادة 4 من نظام ضريبة التصرفات العقارية
The article makes the real estate transaction tax due on the date of the disposition, treats that date by law as the date of documentation, and refers to the Regulations for the date where there is no documentation.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تُستحق الضريبة في تاريخ التصرف العقاري، ويكون تاريخ التصرف العقاري - حُكماً - هو تاريخ توثيقه.
2- تضع اللائحة الأحكام المتعلقة بتحديد تاريخ التصرف العقاري في الحالات التي لا يتم فيها 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 4 explained in plain English
This article answers the question: when does the tax become due?
- The tax is due on the date of the real estate disposition.
- The date of the disposition is, by law, the date of its documentation, meaning the Law adopts the date of documentation as the date of the disposition even if an agreement between the parties preceded it. Documentation, as Article 1 defines it, is the procedures that ensure the real estate disposition is proven in accordance with the relevant legal provisions.
- If documentation does not take place, it is the Regulations that set the provisions on determining the date of the disposition; the text itself does not specify this date.
Determining the due date is important because other articles build on it. Article 5 requires the tax to be paid to the Authority on the date of the disposition, allows payment before it, and allows payment after it in the cases the Regulations specify. The exemptions in Article 3 also exclude certain dispositions from the tax altogether, so the question of the due date does not arise in them if their conditions are met.
Anyone with a disposition that was not documented or whose documentation was delayed and who wants to know the effect on the due date should refer to the Regulations or consult a lawyer who specializes in real estate and tax cases.
Practical example
Fahd agreed with a buyer to sell land in Riyadh in Muharram, and the sale was then documented in Safar. Under this article the date of the disposition is the date of documentation in Safar, and the tax is due on it.
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 4 of the Saudi Real Estate Transaction Tax Law
When is the real estate transaction tax due?
It is due on the date of the real estate disposition, which by law is the date of its documentation.
If the sale is not documented, what is the date of the disposition?
The Regulations set the provisions on determining the date of the real estate disposition in cases where documentation does not take place.
Does the date of the contract count, or the date of documentation?
The article provides that the date of the real estate disposition is, by law, the date of its documentation.
More articles on Paying the Real Estate Transaction Tax
- Article 5
The article requires the real estate transaction tax to be paid to the Authority on the date of the disposition, allows payment before it, and exceptionally after it in cases the Regulations specify.
1- تُسدد الضريبة للهيئة في تاريخ التصرف العقاري، ويجوز سدادها قبله. 2- استثناءً من الفقرة (1) من هذه المادة، يجوز سداد الضريبة بعد تاريخ التصرف العقاري، وذلك في
- Article 7
The article makes the disposer responsible for the tax and for paying it to the Authority, and makes the transferee jointly liable if it is proven to the Authority that he caused the non-payment.
1- يكون المتصرِّف مسؤولاً عن الضريبة المستحقة، وعليه سدادها للهيئة؛ وفقاً للإجراءات وفي المواعيد التي تحددها اللائحة، وذلك دون إخلال بحكم المادة (الخامسة) من ال
- Article 19
The article allows the Authority to coordinate with government bodies, and bars anyone authorized to notarize from notarizing a real estate transaction whose tax was unpaid at the date of notarization, without prejudice to Article 5(2).
1- للهيئة التنسيق مع الجهات الحكومية في كل ما له علاقة بتنفيذ أحكام النظام واللائحة. 2- دون إخلال بحكم الفقرة (2) من المادة (الخامسة) من النظام، يجب على كل شخص
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.