Article 5 of the Saudi Real Estate Transaction Tax Law
المادة 5 من نظام ضريبة التصرفات العقارية
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 الحالات التي تحددها اللائحة.
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 5 explained in plain English
This article governs the due date for paying the tax and to whom it is paid:
- To whom: the tax is paid to the Authority, which under the definitions in Article 1 is the Zakat, Tax and Customs Authority.
- The rule: payment on the date of the real estate disposition, which under Article 4 is the date of documenting the disposition, with payment before this date permitted.
- The exception: payment after the date of the disposition is permitted, but only in the cases the Regulations specify. The text does not state these cases, and it should not be assumed that delay is allowed in others.
This article is linked to Article 4, which makes the tax due on the date of the disposition, so that the due date and payment are, as a rule, on the same date. It is also linked to Article 6, which prevents creating sham or concealed dispositions that result in the due tax not being paid correctly, and requires the tax to be calculated and collected on the basis of the real disposition.
In practice, someone who is about to sell real estate or transfer its ownership should arrange payment of the tax at the documentation date or before, unless their case is one in which the Regulations permit later payment. To find out whether a particular case falls within the exception, refer to the Regulations or consult a lawyer who specializes in real estate and tax cases.
Practical example
Noura intends to sell a villa in Al-Khobar, and the documentation date has been set for a week from now. She may pay the tax to the Authority before that date or on the documentation day itself, but deferring payment until after documentation is not permitted unless her case is one of those the Regulations specify.
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 contentReal Estate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Real Estate Law lawyers
Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Mohammed bin Saleh Al-Qarawi Law and Notary Office, Riyadh
Frequently asked questions about Article 5 of the Saudi Real Estate Transaction Tax Law
Can the real estate transaction tax be paid before documentation?
Yes. The tax is paid on the date of the real estate disposition and may be paid before it.
Can the tax be paid after the sale is completed?
Exceptionally, in the cases the Regulations specify only.
Who is the real estate transaction tax paid to?
It is paid to the Authority, which is the Zakat, Tax and Customs Authority.
More articles on Paying the Real Estate Transaction Tax
- Article 4
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.
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
- 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.