When is the distribution of an inheritance exempt from real estate transaction tax? Zakat and Customs answer
An inquiry was received by the Zakat, Tax and Customs Authority from a follower, stating: "One of the heirs was donated a property and a message came that it was exempted. Now the heirs agreed to sell the property to a person outside the family. What is the method for the buyer to pay the tax and cancel the tax exemption for the heir?"
The Zakat, Tax and Customs Authority pointed out, via its page on X, that if what is meant is the distribution of an inheritance, it is exempt from real estate transaction tax if the inheritance is distributed among the heirs, and the notarized inheritance division decision must be attached.
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It also noted that the legal agent must register the property and select the nature of the applicant as agent of the heirs, stressing the need to enter the identity type of one of the parties to the agency, the identity number of one of the parties to the agency, the legal agency number, and the documentation path is determined as the Ministry of Justice or the National Company for Real Estate Registration. If the applicant is one of the heirs, the nature of the applicant is selected as heirs.
It added: "After obtaining the request number, the clearance procedures can be completed at the Ministry of Justice. You can also submit a registration request through the following link: http://zat.ca/JMfIXO".
It confirmed that the request to register the property on the real estate transactions portal is processed immediately, and after the request number is issued, clearance can be made at the competent authority. In the case of a sale for consideration, as of October 4, 2020, a real estate transaction tax of (5%) of the total value of the sale or transfer of ownership has been imposed, regardless of the condition, description, or use of the property at the time of sale, unless it is exempt from tax.
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Original source: Ajel.sa
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