This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).
The content will be updated regularly. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.
Measures announced to provide relief for taxpayers include easing tax return filing and tax payment requirements for a limited time in response to the coronavirus (COVID-19) pandemic.
New taxation measures
On May 10, 2020, the Minister of Finance, His Excellency Mohammed Al Jadaan, announced that the standard rate of VAT would be increased from 5% to 15% with effect from 1 July 2020. This increase is a response to the unprecedented economic fallout from the impact of the COVID-19 pandemic.
On 1 October 2020, Royal Decree A84 was issued announcing the creation of a new Real Estate Transaction Tax (RETT) with a rate of 5% calculated on the value of the real estate transaction. All real estate transactions that take place after 4 October 2020 will be exempted from Value Added Tax (VAT) and subject to the new RETT.