Zakat authority clarifies real estate tax refund processing times

The Zakat, Tax and Customs Authority has clarified the timeline for processing real estate transaction tax refund requests. Refunds will be reviewed within 15 working days of the cancellation of a paid request. Once approved, the refunded amount will be returned within 10 working days. The real estate transaction tax, set at 5%, applies to the purchase and sale of land, with the state covering up to 1,000,000 riyals for a citizen's first home.

This tax is not applicable to land purchases or self-construction. Inheritance distribution is exempt from real estate transaction tax if the property is divided among heirs, provided the certified inheritance division decision is attached. To register the property, the legal representative must select an heir's representative as the applicant type and provide the ID type and number of one of the parties, along with their agency number.