False real estate information may draw SR50,000 fine

Riyadh - The Zakat, Tax and Customs Authority has suggested a new rule that could impose a maximum penalty of SR50,000 for providing false information regarding real estate transactions. The authority has opened a public consultation period for the draft Article 15, Paragraph 3 of the “Classification of Violations and Penalties for Real Estate Transaction Tax” Law from September 3 to October 3 via the Istitlaa platform.

This draft sets a fine limit at either the amount of the due tax or SR50,000, whichever is higher. The authority aims to define violations and penalties associated with real estate transaction tax, which will improve governance, streamline procedures, and increase transparency among those involved in real estate dealings. Violating the requirement to register a real estate sale can lead to a fine between SR5,000 and SR50,000.

Not keeping tax records and documents as required within the stipulated time can also result in a fine between SR5,000 and SR50,000. Refusing to help the authority during an inspection or failing to provide requested information can also lead to a fine between SR1,000 and SR50,000. Disobeying any part of the regulations or bylaws can result in a fine between SR1,000 and SR50,000.