The Board of Directors of the General Authority of Zakat and Tax (GAZT) has approved amendments to the Real Estate Transaction Tax (RETT) implementing regulations. The announcement was made through Ministerial Resolution No. 2229, which was published on 22 January 2021 and came into effect on the date of publication. The amendments provide for further exempted transactions from RETT.

In detail

Ministerial Resolution No. 2229 details amendments to Article 3(a) of the RETT implementing regulations, increasing the types of transactions partially or fully exempted from RETT. 


Amendments were made to Section 10 of Article 3(a), which discusses the exclusion from RETT of property disposed of as an in-kind contribution by any person to the capital of a joint stock company, provided that corresponding shares are not disposed of for five years. The amended section now states that:

  • The disposal can be an in-kind contribution to the capital of:
    • joint stock companies,
    • limited liability companies, and
    • partnerships or limited partnership companies.
  • These Companies must maintain financial statements audited by a certified external auditor throughout the five-years from the date of owning these shares.


Two sections, 13 and 14, were added to Article 3(a) detailing new transactions that would be exempt from RETT under certain conditions.

Section 13 exempts from RETT the disposal of real estate by a partner in a company by transferring and registering the property in the name of the company provided that:

  • The property has been booked as part of the company's assets before the effective date of the implementing regulations; and
  • The seller should submit audited financial statements, or a certificate from a licensed legal accountant, proving that the property was recorded as part of the company's assets before the effective date of the implementing regulations and remains an asset until the date of disposal.

Section 14  exempts the disposal of real estate as an in-kind participation to the capital of a real estate investment fund:

  • If it is disposed of upon establishing the fund and in accordance with the rules and regulations of the Capital Market Authority; and
  • The exception does not include the funds that are established for the purpose of leasing real estate.

We shall continue to keep you up to date on any further developments. In the meantime, our teams are available to discuss the rules and conditions and assess their impact on your business.

Please refer to our previous tax alerts on the subject through the links provided below.

Tax Alerts

December 2020 - RETT Rules and Conditions for Real Estate Developers

October 2020 - Understanding Real Estate Transaction Tax

Get in Touch

Indirect Tax Contacts

Wadih Abu Nasr

Head of Tax, 

Saudi Levant Cluster


Nick Soverall

Senior Director, Head of Indirect Tax



Oleg Shmal

Director, Indirect Tax



Anil Bahl

Director, Indirect Tax



Salam Eido

Director, Indirect Tax