TaxSavvySA

Inheritance distribution

Dividing inherited property among heirs. RETT?

The situation

Distribution of inheritance among heirs is exempt from RETT. Heirs still declare the transfer and claim the exemption.

The law

  • RETT Implementing Regulations, exemptions: Exemptions include inheritance, family gifts without gain, in-kind contributions held 5 years and others

What it means for you

Declare the distribution on ZATCA and claim the exemption with the inheritance deed. The exemption covers the split among heirs only. If an heir later sells the property to a third party, that sale is taxable at 5 percent.

What to do

  1. Gather documents.
  2. Claim exemption.
  3. Plan later sale.

We can do this for youReal Estate Transaction Tax on a property sale: 5 percent RETT, exemptions and first home support: SAR 1,500

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