Late RETT payment penalty

Deal closed and RETT paid late. Penalty?

The situation

Late payment of RETT attracts 5 percent of unpaid tax for each month or part month. Fines for wrong disclosures are charged separately.

The law

  • RETT Implementing Regulations, penalties: Late payment 5 percent per month; non-disclosure fine from SAR 10,000 up to the tax value

What it means for you

Example: SAR 60,000 unpaid for 45 days = two parts of a month: SAR 6,000. Inaccurate disclosure has a separate fine of at least SAR 10,000. Pay at once.

What to do

  1. Pay tax.
  2. Pay penalty.
  3. Check records.

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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