Decree

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Issued by …

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Published in Umm Al-Qura 5084 issued on 2 May 2025.

Arabic

Issued by Zakat, Tax and Customs Authority Decision 01-03-25.

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Article 1
Definitions

For the purposes of applying this regulation, the terms and phrases provided in this regulation have the meanings assigned to them in article 1 of the Law of the Real Estate Transaction Tax, and the terms and phrases provided below have the meanings assigned to each of them, unless the context otherwise requires:

Custodian:
Has the meaning specified in accordance with the provisions of the Capital Market Law and the regulations and instructions issued pursuant to it.

Representative:
Any person who acquires—by Sharia or by law—the right to represent the disposer before the authority, and this includes—but is not limited to—a trustee, a guardian, a waqf supervisor, a court receiver, a liquidator, a bankruptcy administrator, the representative of a company under its constitutive contract or its articles of association, and the representative of any legal person by virtue of its system.

Correction application:
An application submitted to correct the data of a real estate transaction registered with the authority.

Tax due:
The amount of tax for which the due date has arrived in accordance with the law and this regulation.

Related persons:
Any person who is considered a related person or a person under common control in accordance with article 64 of the Income Tax Law issued by Royal Decree D/1 dated 15 Muharram 1425 [6 March 2004], and the Transaction Pricing Instructions issued by Decision 6-1-19 dated 25 Jumada Al-Awwal 1440 [31 January 2019], and their amendments or any subsequent replacements in the Kingdom.

Securities:
Have the meaning specified in accordance with the Capital Market Law, which have the characteristics of ownership or shareholding rights, including—but not limited to—stocks and fund units.

Shares:
Ownership or shareholding rights in properties, in a legal person, or any type of partnership.

Merger:
The joining of one or more existing legal persons into another existing legal person, or the combination of two or more existing legal persons to establish a new legal person, in accordance with any provisions governing merger operations in the Kingdom.

Acquisition:
The process that takes place through the exchange of shares—including securities—and results in the acquisition of all the shares of a real estate company, provided that both the disposer and the disponee are legal persons.

Related transactions:
Multiple transfer operations of a share in a real estate company by one person or persons, in cases where the transactions are part of a single agreement or a single series of transactions, or in cases where the transacting persons dispose of the shares by agreement.

Transaction by agreement:
Cooperation under an agreement—whether binding or non-binding—or under an understanding—whether formal or informal—between persons, for the purpose of disposing of shares in a real estate company. For the purposes of applying the provisions of the law and this regulation, related persons are considered to be transacting by agreement among themselves unless proven otherwise.

Relatives up to the third degree:
Means the following:

(a) First degree:
Father, mother, son, and daughter.

(b) Second degree:
Brother, sister, grandfather, grandmother, grandson, and granddaughter.

(c) Third degree:
Uncle, aunt, nephew, and niece.

Article 2
Imposition of Tax

(a) A tax is hereby imposed at a rate of 5% on real estate transactions, irrespective of the condition, form, or use of the transacted real estate at the time of transaction, and whether the transaction includes the entire real estate or a subdivided or commonly owned part of it, and whether the transacted real estate is completed, under construction, off-plan, or otherwise, whether notarized or not.

(b) For the purposes of imposing tax on real estate transactions, any movable property placed by its owner in a real estate that is dedicated for the service or exploitation of the real estate on a permanent basis is considered real estate, even if it is not physically attached to it in an inseparable manner.

(c) The total value of a real estate transaction is the value of any consideration, whether monetary or in-kind, agreed upon in relation to the real estate transaction, provided that it is within the limits of fair market value, taking into account any specific cases stipulated in this article.

(d) Permits, original, and dependent rights in rem, and other similar rights that are closely related to the real estate to the extent that they cannot be considered separate rights from it, are considered part of the total value of the real estate.

(e) In cases of taxable real estate transactions that result in the transfer of shares in real estate companies, the tax must be calculated based on the fair market value at the transaction date for all real estate owned directly or indirectly by that company for any purpose multiplied by the percentage of the transferred share, or based on the value agreed upon between the disposer and the disponee and allocated to the real estate if it is higher.

(f) In cases of taxable real estate transactions that result in the granting of a usufruct right over real estate for a period exceeding 50 years, the tax must be calculated based on the present value of the fair market value of the usufruct right at the transaction date, or the present value of the total agreed consideration to be paid, whichever is higher. If the agreed consideration for the usufruct right is amended after the transaction date, the tax must be recalculated and a correction application must be submitted if the recalculation results in an increase or decrease in the tax due, in accordance with the procedures specified in article 11 of this regulation.

(g) In taxable real estate transactions that are related to building, ownership, operation, and transfer projects, the tax must be calculated based on the total value of the transaction, which is the fair market value of the real estate transaction on the actual date of ownership transfer to the disponee, as specified in article 4 of this regulation.

(h) For the purposes of applying article 1 of the law, the definition of real estate company applies to any company, fund, or entity that owns, directly or indirectly, real estate within the Kingdom for the purpose of generating revenue from it by selling or leasing it, provided that the total fair market value of such real estate assets is not less than 50% of the total fair market value of its assets at the date of the transfer of the share in that company or at any time during the 365 days preceding the date of the transfer of the share.

(i) A real estate transaction is created in the event that a person or a group of persons—acting in concert—disposes of a total share of 30% or more of the shares of a real estate company through one or more related transactions during any 3 year period beginning on or after the date on which the shareholding held by such person or persons reaches 30% or more of the shares of that real estate company. Transactions that do not meet the provisions stated in this paragraph are not considered a real estate transaction.

(j) Owning new shares in a real estate company through an increase in the capital of that company is not considered a real estate transaction, in the following cases:

1․  The current partners owning the shares resulting from the increase in capital of the real estate company, provided that their ownership percentages in that company do not change from their ownership percentages in it before the increase.

2․  New partners owning the shares resulting from the increase in capital of the real estate company, provided that the current partners in the real estate company retain the shares they owned before the increase and do not dispose of those shares for a period of five years from the date of the capital increase.

(k) The subdivision of real estate in accordance with the subdivision procedures carried out by the competent entities is not considered a real estate transaction.

The division of real estate owned in common by virtue of a title deed issued by a public notary or an approved attester among its owners is also not considered a real estate transaction, provided that the following is met:

1․ The ownership of the real estate for all owners must be proven in one deed for the same real estate.

2․ The ownership of the real estate after the division must reflect the ownership rights of each owner as proven in the real estate title deed.

3․  There must be no consideration from one owner to another in relation to the division.

(l) A real estate transaction is taxable only once, provided that unity of the parties to the transaction, unity of the real estate, and unity of the value is achieved. This includes real estate transactions resulting from murabaha and ijarah-to-own contracts for the purpose of ownership and financial leasing, provided that the following conditions are met:

1․ The first real estate transaction resulting from those contracts from the disposer to the licensed financing entity is taxable in accordance with the laws in force in the Kingdom.

2․ The two transaction events are included within the contracts issued by the financing entities, with a clear explanation of the parties to the first and second transactions, the real estate, and the value of the real estate transaction.

3․ The description or value of the real estate listed in the previous financing contracts does not change.

Article 3
Exemptions

(a) For the purposes of applying the provisions of article 3(a) of the law, the criteria and controls for full tax exemption for each case mentioned in that paragraph must be as follows:

1․ A real estate transaction is exempt in cases where the inheritance is divided in accordance with the laws in force in the Kingdom.

2․ A real estate transaction is exempt—without consideration, whether monetary or in-kind—for a public, private, or joint waqf, provided that the public, private, or joint waqf is registered with the entities responsible for awqaf as a waqf and is subject to their supervision.

3․ A real estate transaction is exempt—without consideration, whether monetary or in-kind—from or to a legally licensed charitable association, provided that the fields of its charitable activities aim to achieve a public benefit and are granted the status of public benefit by the competent entity. In cases of real estate transactions by a legally licensed charitable association, it is required that its licensed activities allow for the carrying out of real estate transactions.

4․ A real estate transaction is exempt for a public entity or any public legal persons, or entities or projects of public benefit, and the exemption applies provided that the disponee who obtains a direct or indirect share in the real estate is any of the following:

(a) A public entity or a public legal person, and any ministry, department, authority, or center that forms part of the government of the Kingdom are considered a public entity or public legal person.

(b) Any civil society organization whose articles of association aim to achieve public interest in accordance with the Law of Civil Society Associations and Organizations, or any association granted the status of public benefit by the competent entity.

(c) Any entity or project of public benefit in cases where the government of the Kingdom issues directives to transfer ownership of real estate for public benefit purposes.

(d) Any entity or project that acquires the status of public benefit in the Kingdom.

5․ A real estate transaction from a public entity in its capacity as a public body is exempt from tax, and any ministry, department, authority, or center that forms part of the government of the Kingdom, and any public legal person exercising public authority in accordance with the laws of the Kingdom, are considered a public entity, provided that all of the following conditions are met:

(a) That there is a legal instrument authorizing the public entity to exercise the activities of a public body.

(b) That the real estate transaction is not carried out in accordance with economic or commercial criteria, or both.

(c) That there is no competition with the private sector.

6․ A real estate transaction is exempt in cases of expropriation of real estate or temporary seizure of it in accordance with the related issued laws or legal instruments, including the return of the real estate to the original owner in accordance with those laws or legal instruments.

7․ A real estate transaction is exempt for the husband or wife or any of the relatives up to the third degree by way of an attested gift, and the exemption does not apply in the event that the disponee re-disposes the gifted real estate to a person who would not have been eligible for this exemption if the real estate had been gifted to them directly from the first donor, within a period of three years from the date of notarizing the gift.

8․ A real estate transaction is exempt when executing a legally attested will in accordance with the laws in force in the Kingdom.

9․ A real estate transaction is exempt in any of the following cases:

(a) Subscribing to securities offered in a public offering of a real estate company in accordance with the provisions of the Capital Market Law and the laws and instructions issued pursuant to it.

(b) Trading listed securities of a real estate company on a financial market licensed in the Kingdom.

(c) A publicly listed joint stock company in a financial market licensed in the Kingdom buying back its own stocks, provided that this is done in accordance with the laws in force in the Kingdom.

(d) Trading unlisted units of an investment fund established in the Kingdom in accordance with the provisions of the Capital Market Law and the regulations and instructions issued pursuant to it, to which the definition of a real estate company applies. This does not include cases in which a person or a group of persons—acting in concert—disposes of a total share of 50% or more of the units of the fund through one or more related transactions during any three year period beginning on or after the date on which the shareholding held by such person or persons reaches 50% or more of the units of that fund.

10․ A temporary real estate transaction between an investment fund and a custodian—or vice versa—or between custodians for the same fund is exempt, in accordance with the provisions of the Capital Market Law and the regulations and instructions issued pursuant to it.

11․ A real estate transaction where an in-kind share is provided by any person to the capital of a company established in the Kingdom is exempt, provided that the stocks or shares corresponding to the in-kind share are not disposed of for a period of no less than five years from the date of obtaining the stocks or shares corresponding to the in-kind share, and the company shall maintain audited financial statements from an accredited external accounts auditor throughout that period.

12․ A real estate transaction is exempt in cases where one of the parties to the transaction is a foreign government or an international organization, or a diplomatic or military agency or mission, or an accredited member of the diplomatic, consular, or military corps in the Kingdom, provided that there is reciprocal treatment.

13․ A real estate transaction that provides an in-kind share to the capital of a real estate investment fund, in accordance with the provisions of the Capital Market Law and the regulations and instructions issued pursuant to it, is exempt, provided that the units of the fund corresponding to the in-kind share are not disposed of until the date of the termination or liquidation of the fund, or for a period of no less than five years from the date of obtaining the units, whichever is earlier.

14․ A temporary real estate transaction for the purpose of using the real estate as collateral for financing or credit by a licensed entity in accordance with the laws in force in the Kingdom is exempt, unless the real estate is foreclosed upon by permanently transferring its ownership to the financing party or a third party.

15․ A real estate transaction for the enforcement of a compulsory sale order issued by a competent court, in cases of liquidation and administrative liquidation in accordance with the Bankruptcy Law and its executive regulation, is exempt.

16․ A real estate transaction is exempt in any of the following cases:

(a) A real estate transaction resulting from merger operations between legal persons, provided that all of the following are met:

(i) That the consideration for the merger is limited to shares in the merging or resulting legal person, without including any other monetary or in-kind consideration, in a manner consistent with the provisions of the Companies Law, where applicable.

(ii) That the shares received by the owners of the merged legal entity are proportional to their ownership rights before the merger.

(iii) That the shares of the merging or resulting legal entity remain owned—directly or indirectly—by the same partners or shareholders for a period of no less than five years from the date of the merger, unless the shares are disposed of as part of a subsequent merger or acquisition operation that meets the criteria specified in this article.

This exemption does not apply to any other consideration—whether monetary or in-kind—received by a partner or shareholder who objects to the merger.

(b) A real estate transaction resulting from acquisition operations between legal persons, provided that all of the following are met:

(i) That the consideration for the acquisition is limited to shares in the acquiring entity, without including any other monetary or in-kind consideration.

(ii) That the owners of the acquired entity retain the shares they received in the acquiring entity in exchange for the acquisition operation for a period of no less than five years from the date of registration or obtaining of those shares, unless the shares are disposed of as part of a subsequent merger or acquisition operation that meets the criteria specified in this article.

(iii) That the acquisition operation is completed in a single deal.

17․ A real estate transaction by a natural person to a company or investment fund established in the Kingdom, where this person solely owns—directly or indirectly—all shares or stocks of a company or units of a fund is exempt, provided that there is no change in the ownership percentage of that person in the company or fund for a period of no less than five years from the date of the transaction.

18․ A real estate transaction between two companies established in the Kingdom is exempt if one of them obtains—directly or indirectly—all the stocks or shares of the other company, as well as a real estate transaction between a company and an investment fund both established in the Kingdom if the company obtains—directly or indirectly—all the units of the fund, and a real estate transaction between companies or investment funds both established in the Kingdom where all their stocks, shares, or units are obtained—directly or indirectly—by the same person, provided that all the stocks or shares of the disponee company or the units of the disponee fund remain owned—directly or indirectly—by the same person for a period of no less than five years from the date of the real estate transaction.

19․ A real estate transaction by any person to a real estate developer licensed to practice off-plan sale and lease activities is exempt, provided that the following conditions are met:

(a) The real estate developer must be licensed to practice off-plan sale and lease activities in accordance with the laws, regulations, controls, and instructions in force in the Kingdom, on or before the date of the real estate transaction.

(b) The real estate subject of the transaction must be designated for an off-plan sale project and have a license decision issued for it by the competent entity, on or before the date of the real estate transaction.

(c) In the event that a license decision has not been issued by the competent entity on or before the date of the real estate transaction, the disposer must be granted a grace period of 90 days from the date of the real estate transaction to submit the license decision to the authority, provided that the disposer pays the tax due or provides a cash or bank guarantee equivalent to the amount of the tax due to the authority, on or before the date of the real estate transaction.

(d) In the event that a license is issued within the period referred to in paragraph (a)(19)(c) of this article, the provided guarantee must be fully refunded or the paid tax must be refundable in accordance with the provisions of this regulation, where applicable.

(e) In the event that a license is not issued or is not submitted to the authority within the period referred to in paragraph (a)(19)(c) of this article, the authority may liquidate the provided guarantee as payment of the tax due, and it is not permitted to refund any tax paid after the expiry of the grace period.

20․ A real estate transaction—without monetary or in-kind consideration—to a company or investment fund both established in the Kingdom is exempt, where all the shares or stocks of the company or the units of the fund are owned—directly or indirectly—by a public, private, or joint waqf registered with the entities responsible for awqaf as a waqf and is subject to their supervision, is exempt, provided that there is no change in the ownership percentage of the waqf of the company or fund for a period of no less than five years from the date of the real estate transaction.

21․ The return of a transacted real estate to its previous owner as a result of the consensual cancellation of an attested real estate transaction—with a public notary or an accredited attester—between its parties is exempt, provided that this occurs within a period not exceeding 90 days from the date of notarizing the real estate transaction subject of the cancellation, and on the condition that no change has occurred to the description of the real estate and its full value is refunded.

(b) All exempt real estate transactions under article 3 of the law must be registered in accordance with the controls and procedures stipulated in article 12 of the law and article 11 of this regulation.

(c) The following is not considered a breach of the condition of not disposing of the stocks or shares corresponding to the tax-exempt real estate transaction:

1․ A change in ownership percentage due to subscription to securities offered in a public offering of the stocks of the disponee company or the units of the disponee fund, in accordance with the provisions of the Capital Market Law and the regulations and instructions issued pursuant to it.

2․ A real estate transaction exempt in accordance with the provisions of the law and this regulation in the implementation of a compulsory sale order issued by a competent court.

3․ A transaction resulting from cases of mergers and acquisitions exempt in accordance with the provisions of the law and this regulation, provided that the resulting shares are retained for the period necessary to complete the periods mentioned in the relevant exemptions.

Article 4
Tax Due Date

The following provisions apply regarding the determination of the date of a real estate transaction in cases where notarization has not been carried out:

(a) In cases of taxable real estate transactions that result in the transfer of possession of the real estate for the purpose of owning it, the date of the real estate transaction is the date on which the real estate is placed under the possession of the disponee.

(b) In cases of taxable real estate transactions that result in granting the right of usufruct of the real estate for a period exceeding 50 years, the date of the real estate transaction is the date of granting the right of usufruct, unless the granting of the right of usufruct is cancelled within a period of 30 days from the date of granting it.

(c) In cases of taxable real estate transactions resulting from build, own, operate, and transfer projects, the date of the real estate transaction is the date of the actual transfer of ownership to the disponee, which is understood to be the date on which all conditions related to the transfer of ownership are met, in accordance with the requirements of the contract or agreement signed between the parties to the transaction.

(d) In cases of taxable real estate transactions resulting from the transfer of shares in a real estate company, the date of the real estate transaction is the date on which the shares are transferred, or the date on which an unconditional agreement for the transfer of those shares is signed, whichever is earlier.

(e) In cases of taxable real estate transactions resulting from the off-plan sale of real estate in accordance with the laws, regulations, controls, and instructions in force in the Kingdom, the date of the real estate transaction is the date of notarizing the transfer of ownership of the real estate with a public notary or an accredited attester.

(f) In cases where a real estate transaction is exempt from tax on the condition that specific conditions are met to benefit from the exemption in accordance with the provisions of article 3 of the law and article 3 of this regulation, but it subsequently becomes non-exempt due to the failure to continue meeting one or more of the conditions necessary for the exemption, the tax is due from the date on which that real estate transaction no longer meets the conditions for its exemption.

(g) Without prejudice to the provisions mentioned in this article, the date of the real estate transaction is the date on which an unconditional agreement regarding the real estate disposal is signed or the date on which the transfer of ownership actually occurs, whichever is earlier.

Article 5
Tax Payment Due Date

(a) In accordance with article 5(2) of the law, it is permitted to pay the tax after the date of the real estate transaction in the following cases:

1․ In cases of taxable real estate transactions resulting from the transfer of shares in a real estate company, the tax on the transaction must be paid within a deadline not exceeding 30 days from the date on which the shares are transferred, or the date on which an unconditional agreement for the transfer of those shares is signed, whichever is earlier.

2․ In cases where a real estate transaction is exempt from tax on the condition that specific conditions are met to benefit from the exemption in accordance with the provisions of article 3 of the law and article 3 of this regulation, but it subsequently becomes non-exempt due to the failure to continue meeting one or more of the conditions necessary for the exemption, the tax due on it must be paid within a deadline not exceeding 30 days from the date of the breach of the conditions for applying the exemption.

(b) Without prejudice to the provisions mentioned in paragraph (a) of this article, in cases where a real estate transaction is not notarized in accordance with the laws and regulations in force in the Kingdom, the tax must be paid within a deadline not exceeding 30 days from the date of the real estate transaction by virtue of article 4 of this regulation.

(c) In cases of real estate transactions resulting from the off-plan sale of real estate in accordance with the laws, regulations, controls, and instructions in force in the Kingdom, the tax must be paid on or before the date of notarization with a public notary or an accredited attester.

(d) The authority may demand payment of the tax due within 30 days from the date of the transaction in cases where it is proven to the authority that the primary purpose of the disposer is to delay tax payment.

Article 6
Sham or Disguised Transactions

For the purposes of article 6 of the law, sham transactions arise in cases where the parties to one or more real estate transactions create documents that give a different form to the real estate transaction, leading to the concealment of the true transaction, or implement any other legal arrangements that do not reflect the actual rights and obligations arising from the true transaction or transactions, and the tax must be calculated based on the true transaction.

Article 7
Responsibility for Payment of Tax

(a) In accordance with article 7(1) of the law, a disposer is responsible for paying the tax due to the authority in accordance with the following procedures:

1․ Payment must be made to the bank account specified by the authority, and the transaction-specific number designated by the authority must be referenced.

2․ The tax due to the authority as a result of the tax assessment becomes payable in accordance with the dates specified for the payment of tax on taxable real estate transactions under the provisions of article 5 of the law and article 5 of this regulation, and the calculation of fines commences in accordance with the provisions of the law and this regulation.

(b) A disponee is responsible—jointly and severally with the disposer—for the payment of tax due in cases where it is proven to the authority that the disponee is a reason for the non-payment of the tax due, and this includes, for example, the following:

1․ The disposer and the disponee enter into an arrangement aimed at reducing the amount of tax due or at not paying it on time.

2․ The disponee commits any act that leads to a violation of the restrictions specified in this regulation, in a manner that results in the non-payment or reduction of the tax due or its non-payment on time.

(c) In cases where a disponee is considered jointly and severally responsible for the tax due, the authority shall notify both the disposer and the disponee—who is jointly and severally responsible—of the amount of tax due and its date of payment. A disponee shall notify the authority when he pays the tax if he is jointly responsible.

Article 8
Recalculation by the Authority of the Tax Due

(a) The authority may verify the value of a real estate transaction, particularly in any of the following cases:

1․ Transactions between related persons.

2․ Transactions under which the consideration is divided between the real estate and other assets.

3․ Cases involving non-monetary consideration.

4․ Other cases involving an unknown or unspecified value.

5․ Real estate transactions that are undocumented or those not disclosed to the authority.

6․ Cases where manipulation in an artificial manner for any purpose whatsoever of the value of the real estate transaction is suspected, or any other cases of tax evasion.

(b) In cases where the authority verifies the value of the real estate transaction, the disposer or the disponee must be given the opportunity to submit a valuation of the real estate transaction, provided that it is issued by an accredited valuer.

(c) If the authority determines the value of the real estate transaction to be lower than the fair market value, or in the case of transactions with unspecified or undisclosed value, it may set the value of the real estate transaction in accordance with the fair market value, taking into account approved real estate indicators, or by engaging an accredited valuer to assess the fair market value.

(d) The authority shall demand payment of the tax due that must have been calculated within a period not exceeding three years from the date of the disclosed real estate transaction, or within a period not exceeding three years from the date it becomes aware of the undocumented or undisclosed real estate transaction.

(e) The periods mentioned in the law and this regulation do not affect the right of the authority to demand payment of the tax due in cases where the time restrictions specified in this regulation for real estate transactions exempt from tax in accordance with article 3 of the law are breached.

(f) The authority shall notify the person who has not paid the tax or any fines that become due for payment and shall take the necessary measures to collect them.

(g) The amount of tax or fines must be considered final in the event that the legal period for objecting to the decision of the authority expires without any objection or grievance being submitted in accordance with the provisions of article 17 of the law, or in the event that a final decision is issued as specified in the Work Rules of the Zakat, Tax, and Customs Committees and any subsequent rules applicable to those committees, or in the event that a settlement agreement is reached with the authority regarding those amounts.

(h) In the event of non-payment of the final tax dues, which include the final tax amount and fines, the authority shall apply the provisions stipulated in articles 73, 74, and 75 of the Income Tax Law issued by Royal Decree D/1 dated 15 Muharram 1425 [6 March 2004], to collect those tax dues.

Article 9
Tax Refund

In accordance with article 9 of the law, the following procedures, controls, and periods apply with regard to the refund of tax paid in excess or in error, tax paid on an incomplete real estate transaction, or tax paid on a cancelled real estate transaction:

(a) A disposer or his representative may claim a refund of the tax amount paid in accordance with the provisions and conditions stipulated in this article, in any of the following cases:

1․ In the event that the tax due is paid in excess or in error, including cases where the tax is paid and it is subsequently proven that the real estate transaction is exempt from tax.

2․ In the case of an incomplete real estate transaction for which the tax has been paid to the authority, provided that the disposer refunds any consideration received in relation to the incomplete real estate transaction. The authority must be notified in accordance with the procedures and timeframe specified in article 11 of this regulation.

3․ In the event of a cancellation of the real estate transaction in accordance with the provisions of article 3(a)(21) of the law, provided that all of the following conditions are met:

(a) The previous owner refunds the full value of the real estate subject of the cancellation to the disponee.

(b) The disponee transfers the real estate back to the previous owner by notarizing it with a public notary or an accredited attester within 90 days from the date of notarizing the real estate transaction subject of the cancellation, without any change occurring to the description of the real estate.

(c) Notifying the authority of the cancellation in accordance with the procedures and timeframe specified in article 11 of this regulation.

(b) A tax refund application must be submitted to the authority as specified by the authority. The refund application must also be submitted within a period not exceeding 12 months from the date the payment arising from the real estate transaction becomes due in accordance with the provisions of article 5 of the law and article 5 of this regulation, which results in the tax refund event, or within 60 days from the date of issuance of a final decision by the competent judicial entity or from the date of issuance of a decision to settle with the authority regarding the real estate transaction.

(c) The authority shall consider the tax refund application and may request any additional documents to verify the validity of the application, and it shall issue its decision to approve or reject the application, partially or wholly, while notifying the applicant and stating the reasons for the rejection. In all cases, the authority shall issue a decision on the refund application within 30 days from the date of submission of the application, otherwise the application is considered rejected. In the event of approval of the refund, wholly or partially, the authority shall finalize the refund procedures and return the amount to the bank account specified in the refund application within 30 days from the date of approval of the refund application.

(d) The authority may, for a single time, extend the period for issuing its decision regarding the refund application referred to in paragraph (c) of this article for a similar period, provided that the extension decision is issued before the end of the initial period and the applicant is notified of it.

(e) Refund applications of amounts paid in excess that are subject to an objection or grievance by the disposer must not be considered until a final decision is issued regarding that objection or grievance, or a final decision is issued by the competent judicial entity.

(f) The authority may deduct or withhold the refund amount if there are other taxes, zakat, fines, or any other amounts owed by the disposer and unpaid to the authority, provided that the authority notifies the applicant of the mechanism to settle his outstanding balance.

Article 10
Confidentiality

In accordance with article 11 of the law, it is permitted to disclose any information received or accessed by the officers of the authority and all those working for it or on its behalf in accordance with the following controls and conditions:

(a) The officers or personnel of the authority may disclose information pertaining to a person that they obtained in their official capacity in the following cases:

1․ If the disclosure of information pertaining to a person is required by a court order.

2․ If the disclosure is necessary for exercising the duties and powers entrusted to the authority.

3․ If the disclosure is to the officers or personnel of the authority, the General Court of Audit, a judicial entity, a court, or a tax authority affiliated with a foreign state in accordance with any treaty or agreement to which the Kingdom is a party.

(b) It is permitted for the officers or personnel of the authority to disclose information pertaining to a person within the context of work, under the instructions issued by the authority, and in the cases where they are authorized to do so.

(c) Without prejudice to the provisions mentioned in the other paragraphs of this article, it is permitted to disclose information without violating confidentiality if the information is provided to another person based on written consent from the person to whom the information relates.

(d) The officers and personnel of the authority, and all those working for it or on its behalf, shall maintain the confidentiality of information in accordance with the provisions of the law and this regulation.

(e) Whoever violates the provisions stipulated in this article must be subject to the procedures and punishments specified by a decision of the board.

Article 11
Controls, Procedures, Forms, and Documents Necessary for the Implementation of the Provisions of the Law

In accordance with articles 12 and 18 of the law, the following controls, procedures, forms, and documents are necessary for the implementation of the provisions of the law:

(a) Controls and procedures for registering the real estate transaction with the authority:

1․ A transferor or his representative shall register any real estate transaction, irrespective of whether the transaction is taxable or exempt, using the electronic portal made available by the authority for this purpose. The real estate transaction registration form must include the following information:

(a) Information of the disposer and the disponee in a manner that clarifies the details of their identity.

(b) The reference number of the contract, legal deed, or registration document relating to the real estate (if any).

(c) Description and details of the real estate at the time of the transaction.

(d) Specifying the exemption related to the real estate transaction (if any).

(e) The total value of the real estate transaction agreed upon between the disposer and the disponee (if any).

(f) Any other data specified by the authority in the registration form.

2․ A real estate transaction must be registered with the authority on or before the date of the transaction.

3․ The registration of a real estate transaction is considered an acknowledgment by the disposer of the accuracy of the information related to the transaction event.

4․ If a real estate transaction results in tax due to the authority and the disponee has paid it, the authority shall issue a notification confirming the registration of the transaction with it and the payment of the tax due on it.

5․ If a real estate transaction is exempt from tax in accordance with the data provided by the disposer, the authority shall issue a notification confirming the registration of the transaction with it.

6․ The registration of a tax-exempt real estate transaction is not required in cases of subscription to publicly offered securities and trading of listed securities.

7․ In cases of taxable real estate transactions resulting from the transfer of shares in a real estate company, a registration application for these transactions must be submitted on or before the tax payment date specified in article 5 of this regulation.

(b) Controls and procedures for correcting the data of a real estate transaction registered with the authority:

1․ An application to correct the data of a real estate transaction must be submitted using the electronic portal made available by the authority for this purpose within thirty 30 days from the knowledge of the disposer that the registered data is incorrect, or upon the occurrence of any incident that has led to a breach of the criteria and controls for exempting the real estate transaction from tax.

2․ Any additional tax due as a result of the correction becomes payable on the tax payment due date, according to the provisions of article 5 of the law and article 5 of this regulation.

3․ If a correction application leads to a reduction in the amount of tax due, it is permitted to submit a refund application of the tax paid in excess, taking into account the procedures and restrictions stipulated in article 9 of this regulation.

4․ When submitting an application to correct the registration of a real estate transaction, the disposer must be notified of the right of the authority to revalue the real estate in accordance with its legally prescribed powers.

(c) Controls and procedures for examining real estate transactions and assessing their value:

1․ Persons subject to examination or inspection shall cooperate with the authority in accordance with the following conditions:

(a) It is permitted to conduct the examination at the headquarters of the authority. It is also permitted to conduct the examination or inspection at the place of business of the person subject of the examination or inspection. In all cases, the authority shall notify the person of the examination at least 20 days before the date of commencement of the examination.

(b) As an exception to paragraph (c)1(a) of this article, the authority may conduct the examination without prior notification if it has reasonable grounds to suspect a violation of the provisions of the law or this regulation, or in the event of refusal or likely refusal of the person subject of the examination to cooperate with the authority, based on a prior decision by the governor or his delegate.

(c) If the examination is conducted at the place of business of the person, it must be carried out during his official working hours or as agreed upon with him. The person shall allow the officers of the authority access to all books, records, invoices, and accounting documents that must be kept in accordance with the law and this regulation. The authority may examine them within or outside the place of business of the person and may request copies of them and retain those copies for examination purposes.

(d) If the authority transfers the books, records, invoices, and accounting documents from the premises of the person, it shall provide the person with a receipt of this.

(e) The authority shall return the transferred documents after the end of examining them within 20 days from the date of the end of the examination. The authority may retain copies of these documents if it deems it necessary.

(f) The authority shall notify the person subject of the examination of the end of the examination procedures and its results, including the reasons for any tax assessment or fines imposed on him.

2․ The authority shall coordinate with any government authority or entity to obtain all required information to perform its tasks of examining the real estate transaction and assessing its value. The authority may also use any data or information available to it during the procedures for examining real estate transactions and assessing their value, whether such information is publicly available or obtained from third parties, government entities, international bodies, or foreign government entities.

3․ The governor shall issue a decision naming the officers concerned with monitoring, inspecting, and policing violations of the provisions of the law and this regulation.

4․ The officers of the authority named by a decision of the governor may enter any of the places of business, branches, or buildings of a person carrying out real estate transactions for the purpose of conducting an examination or inspection, in addition to places belonging to him or any third party related to him or his activities, and may access any books, records, documents, or information related to his activities or in his possession, provided that a prior decision approving this is issued by the governor or his delegate.

5․ The officers of the authority named by a decision of the governor may enter any real estate known or believed to be subject of a real estate transaction for the purpose of examination or inspection based on a prior decision of the governor or his delegate, during the times agreed upon with the occupant of the real estate or as specified in the decision, provided that the authority notifies the occupant and owner of the real estate at least 20 days before entering any part of the used real estate.

6․ If the books, accounting documents, and records of the person subject of the examination or inspection are stored in a computer system or another information technology system, he shall provide the officers of the authority with paper copies or electronic files containing the required information when it requests this from him.

7․ In the event that the person subject of the examination or inspection does not cooperate with the officers of the authority by providing the required information, the officers of the authority may take additional measures to obtain invoices, records, accounting documents, and any other relevant documents that may provide such information. They may also temporarily seize and withhold these documents if it becomes apparent that the person subject of the examination or inspection may conceal, damage, or manipulate such documents. In cases where a person is suspected of engaging in any act of tax evasion, the authority may enter the place of business of the person, his branches, or his buildings and collect evidence related to that violation, provided that a prior decision approving this is issued by the governor or his delegate.

8․ The authority shall notify the person subject of the inspection of the officers assigned responsibility for conducting the inspection activity. The assigned officers shall also carry their identification cards while carrying out official activity at any premises in accordance with this article.

(d) Procedures for notifying of decisions issued by the authority related to the implementation of the provisions of the law and the regulation:

1․ Notifications sent by the authority must be issued electronically through a mechanism that confirms their delivery to the addresses approved by the authority for the recipient of the notification.

2․ All notifications issued by the authority to the recipient are considered as having been received by him on the date of their dispatch, unless there is evidence of a delay in receiving the notification due to circumstances beyond the control of the recipient.

(e) Forms, notifications, and electronic means necessary for the implementation of any obligation or procedure related to the provisions of the law and the regulation:

1․ The authority may specify any form or electronic format to be used mandatorily in registration procedures, for submitting applications to the authority, or for any other obligations arising on the disposer or any other person.

2․ The authority may require the submission of documents in electronic or written form—if necessary—in accordance with the law and this regulation.

(f) Documents and records that must be kept for tax purposes, the legal periods required for keeping them, the means used for this, and the necessary controls for recordkeeping:

1․ A disposer and a disponee, or their respective representatives, shall keep the following documents and records:

(a) Notarization documents, title registration deeds, or unofficial documents related to real estate transactions.

(b) Records of payments related to a real estate transaction.

(c) All documents, information, and records necessary to prove the value of a real estate transaction and the tax due on it.

(d) All documents, information, and records necessary to prove the fulfillment of the criteria and controls for exempting any real estate transaction from tax.

(e) Commercial books related to a real estate transaction, unless the person is not required to keep commercial books.

2․ Documents and records must be kept within the Kingdom either in tangible form or by providing access to the server where the records are stored electronically, in addition to taking the necessary security measures and controls to prevent their manipulation.

3․ All records must be kept for a period of five years from the date of the real estate transaction, without prejudice to any longer periods as specified in any other law.

(g) A trustee, guardian, steward, agent, supervisor, liquidator, court receiver, bankruptcy administrator, the General Commission for the Guardianship of Trust Funds for Minors and their Counterparts, and the General Authority for Endowments shall comply with the obligations and other provisions mentioned in this article when acting on behalf of others.

Article 12
Guidelines, Tax Circulars, and Clarification Decisions

In accordance with article 13 of the law, the following provisions and procedures apply:

(a) The authority shall work to raise awareness among registrants and strengthen their level of voluntary compliance, and shall issue the necessary guidelines or tax circulars to assist them in fulfilling their obligations.

(b) The authority may—at its discretion—issue a clarification decision to clarify the tax treatment of any transaction in accordance with the provisions of the law and this regulation, and this decision must be issued either upon a request submitted to it or if it considers that issuing such a decision is needed. The authority may publish the decision on its website, and the clarification decision must specify the period for which it is effective. Its issuance must also be in accordance with the provisions and procedures specified by the authority.

(c) The authority shall adhere to the content of the clarifications provided in guidelines, tax circulars, or clarification decisions in accordance with paragraphs (a) and (b) of this article when applying the provisions of the law and this regulation, for the periods following the issuance, publication, or amendment of these guidelines, tax circulars, or clarification decisions, without this extending to periods prior to their issuance, publication, or amendment.

(d) The provisions of paragraph (c) of this article do not apply in the following cases:

1․ Differences in the actual facts, activities, or deals from those specified in the guidelines, tax circulars, or clarification decisions.

2․ Omission or misrepresentation of material facts.

3․ Deals that do not meet the assumptions or conditions included in the guidelines, tax circulars, or clarification decisions.

(e) The purpose of any document issued by the authority in accordance with this article is to clarify how the provisions of the law and this regulation apply to a specific deal involving a defined set of facts, and it is not intended to grant the authority the power to provide any exclusion, exemption, privilege, discount, or any other advantage beyond matters permitted under the provisions of the law and this regulation.

Article 13
Objection and Grievance

(a) For the purposes of article 17 of the law, the detailed rules and procedures for objection and grievance must be in accordance with the provisions mentioned in the Work Rules of the Zakat, Tax, and Customs Committees and any subsequent rules applicable to those committees.

(b) In cases where a person files a grievance in accordance with the provisions of article 17 of the law and the authority has evidence or reason to doubt that the person may not pay the tax subject of the grievance, the authority may request a cash or bank guarantee from him up to the amount of the unpaid tax and related fines. The board shall issue the controls related to requesting the guarantee.

Article 14
Final Provisions

(a) In cases where the tax on a real estate transaction becomes due before the effective date of the law, the powers of the authority regarding the assessment of the transaction, calculation of the tax, and demand for its payment are as follows:

1․ The authority may, within a period not exceeding three years from the effective date of the law, verify the value of the real estate transaction, recalculate the tax due, and demand its payment in cases where it is proven to the authority that such value is less than the fair market value, provided that the real estate transaction is disclosed through its registration with the authority.

2․ The authority may, within a period not exceeding three years from the date it becomes aware of the real estate transaction or the effective date of the law, whichever is later, verify the value of the real estate transaction, recalculate the tax due, and demand its payment in cases where it is proven to the authority that such value is less than the fair market value, provided that the real estate transaction is not disclosed to the authority.

3․ The restrictions mentioned in this article do not affect the right of the authority to demand payment of the tax due in cases where violations of the restrictions stipulated in the regulation in force on the date of the real estate transaction occur with respect to real estate transactions exempt from tax.

(b) In cases where the tax on a real estate transaction, for which the associated tax payment becomes due before the effective date of the law, is not paid, the following provisions regarding the calculation of fines apply:

1․ A fine equivalent to 2% of the unpaid tax amount must be applied, in accordance with the provisions of article 15 of the law, for each month or part of it after the effective date of the law, in addition to the fine for non-payment of tax under the provisions of the Executive Regulation of the Real Estate Transaction Tax issued by Ministerial Decision 712 dated 15 Safar 1442 [2 October 2020] and its amendments, for the period of non-payment before the effective date of the law, provided that the total amount of fines calculated as of the effective date of the law does not exceed 50% of the unpaid tax amount. In all cases, the amount of the fine calculated must not exceed 50% of the unpaid tax amount after the effective date of the law.

2․ If the authority adjusts the amount of tax due and notifies the disposer of the adjustment before the effective date of the law, the additional fine of 1% stipulated in article 15 of the law begins to apply after 30 days from the effective date of the law or 30 days from the date of notification, whichever is later.

(c) A refund application for tax that may be refunded in accordance with the provisions of the Executive Regulation of the Real Estate Transaction Tax issued by Ministerial Decision 712 dated 15 Safar 1442 [2 October 2020] and its amendments, must be submitted within 12 months from the effective date of the law, within 60 days from the date of issuance of a final decision by the competent judicial entity, or from the date of issuance of a decision to settle with the authority regarding the real estate transaction.

Article 15
Entry into Force

This regulation must be published in the official gazette, and comes into force from the date of entry into force of the law.

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Published in Umm Al-Qura 5080 issued on 9 April 2025.

Arabic

Issued by Ministry of Commerce Decision 288

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Article 1
Definitions

1․ Words and phrases provided in this regulation have the meanings assigned to each of them in article 1 of the Commercial Register Law issued by Royal Decree D/83 dated 19 Rabi Al-Awwal 1446 [22 September 2024].

2․ The following words and phrases—wherever they appear in this regulation—have the meanings assigned to each of them:

Registration:
Recording and publishing the data of a merchant and any subsequent amendments to it in the Commercial Register.

Unified Electronic Code:
An electronic means issued by the Saudi Business Center through which the data of the merchant is displayed to enable others to view it.

Article 2
The Registrar and His Powers and Functions

1․ ‏The ministry shall manage the Commercial Register and the mandates and functions of the registrar.

2․ ‏The registrar shall exercise the mandates and functions stipulated in article 4 of the law, in addition to the following mandates and functions:

(a) Working to raise the level of compliance with the laws and regulations that it supervises the implementation of.

(b) Developing the Commercial Register and raising the quality of electronic services.

(c) Analysing data to determine the market situation and the status of establishments.

(d) Enhancing the technical linkage between the Commercial Register and other government entities.

Article 3
Data That Must Be Included in the Application for Registration in the Commercial Register

1․ ‏An application for registration in the Commercial Register must include the data stipulated in article 6 of the law and the following data:

(a) Type of activity the merchant wishes to practice.

(b) Contact details of the merchant.

2․ A merchant shall submit to the registrar, within 90 days from the date of his registration in the Commercial Register, the bank account details and any subsequent updates to it.

Article 4
Provisions Relating to the Registration of an Activity in the Commercial Register

1․ A merchant shall obtain a license to practice the activity registered in the Commercial Register for activities that require a license, within 90 days from the date of registering the activity in the Commercial Register. The entity licensing the activity shall notify the registrar immediately upon issuing the license or any subsequent update to the license data to register it in the Commercial Register.

2․ If 90 days pass from the date of registering the activity in the Commercial Register without a license being issued for activities that require it, or without the merchant submitting proof of practicing an activity that does not require a license, the registrar shall delete the registration of the activity of the merchant from the Commercial Register. The registrar may extend this period ex officio or at the request of the merchant, according to the license issuance procedures and duration with the licensing entity.

3․ ‏The entity competent with issuing a municipal license shall notify the registrar immediately upon issuing a municipal license for a new branch or any subsequent update to the municipal license data to register it in the Commercial Register.

Article 5
Registration of a Foreign Investor in the Commercial Register

A foreign investor shall, upon applying for registration in the Commercial Register, attach proof of registration with the Ministry of Investment or other competent entities, in addition to the documents specified by the registrar, along with a certified Arabic translation of them.

Article 6
Registration of a Merchant in the Commercial Register

A merchant must be registered in the Commercial Register once, even if he has multiple activities and branches.

Article 7
Correction or Completion of the Application

An applicant for registration shall correct or complete the application for registration in the Commercial Register within 15 days from the date of his notification, otherwise the application is cancelled, and he may submit a new application.

Article 8
Application Submission Mechanism

1․ ‏Applications must be submitted to the registrar through the website of the Commercial Register, in accordance with the form prepared for this.

2‏. The registrar may, if it is not possible to submit applications through the website of the Commercial Register, allow them to be submitted through one of its offices.

Article 9
Update by Registrar of Registration Data

1 ‏. The registrar shall—ex officio—update the registration data in the Commercial Register in the event of the issuance of a decision by any competent entity or a final judgment that results in a change or amendment to the registration data.

2․ ‏The registrar shall notify the merchant within five days from the date of updating the data in accordance with the provisions of paragraph 1 of this article.

Article 10
Annual Confirmation Due Date

1․ A merchant shall submit to the registrar annually a confirmation of the accuracy of the data registered in the Commercial Register.

2․ ‏The annual confirmation due date is upon the completion of one year from the date of registration in the Commercial Register.

3․ A merchant may submit the annual confirmation to the registrar 30 days prior to its due date.

Article 11
Suspension of Registration in the Commercial Register

1․ The registrar shall suspend the registration of the merchant in the Commercial Register and the services related to it if he does not submit the annual confirmation within 90 days from its due date, except for the following services:

(a) Printing the commercial registration in Arabic and English.

(b) Printing a detailed data extract of the registration in the Commercial Register.

(c) Lifting the suspension of registration in the Commercial Register.

(d) Deleting the registration from the Commercial Register.

The registrar shall notify other public entities immediately upon suspension of registration in the Commercial Register.

2․ The suspension of registration in the Commercial Register, in accordance with the provisions of article 15(3) of the law, results in the suspension by other public entities of providing their services related to the Commercial Register and the licenses issued by them to the suspended registration.

Article 12
Voluntary Deletion Procedures

1․ ‏If a merchant submits an application to voluntarily delete the registration from the Commercial Register, the registrar shall decide on it within ten days from the date of its submission.

2․ ‏The registration of a company or branch of a foreign company is deleted from the Commercial Register after completion of the liquidation procedures prescribed in the Companies Law or the Bankruptcy Law.

3․ ‏A natural person merchant is not exempt from paying the fees and any other obligations, if any, if his registration is deleted from the Commercial Register.

Article 13
Procedures for Applying for the Continuation of Practice of the Activity of a Deceased Merchant

1․ Any of the heirs of a deceased natural person merchant may submit an application to continue practicing a commercial activity within 60 days from the occurrence of death. If the application is submitted within this period, the applicant shall complete the legal procedures related to the continuation within 180 days from the date of the application, and the registrar may, based on the cases it determines, extend this period.

2‏. If the heirs of the deceased natural person merchant do not comply with completing the legal procedures related to the continuation of practicing the commercial activity within 180 days, the registrar shall, after verifying the death, notify the heirs of the deletion of the registration of the deceased merchant within 30 days from the date of the notification. If this period expires without extension or completion of the procedures related to the continuation, the registrar shall delete the registration of the deceased merchant from the Commercial Register and notify the heirs of this.

Article 14
Display of Data Registered in the Commercial Register

1‏. A merchant shall display the basic data registered in the Commercial Register through the Unified Electronic Code in a conspicuous place that enables others to view it inside and outside the store.

2‏. A merchant who practices e-commerce shall display the Unified Electronic Code on his website.

Article 15
Data Registered in the Commercial Register

1․ ‏Any person may view any of the following basic data registered in the Commercial Register:

(a) Trade name.

(b) Commercial registration number.

(c) Name of the director, directors, or members of the board of directors, as the case may be.

(d) Legal form of the merchant.

(e) Date of registration in the Commercial Register.

(f) Annual confirmation due date.

(g) Registration status of the merchant in the Commercial Register.

(h) Amount of capital of the merchant.

(i) Phone number, email address, and website of the merchant.

(j) Address of the principal place of business and branches of the merchant.

(k) Activities of the merchant.

2‏. Any person may request from the registrar a detailed data extract of the registration in the Commercial Register that includes data related to any of the following:

(a) The company and the partners in the company.

(b) The director, directors, or members of the board of directors, as the case may be.

(c) The natural person merchant.

Article 16
Exemption from Registration in the Commercial Register

1‏. The following are exempt from the obligation to register in the Commercial Register:

(a) Whoever practices a temporary seasonal commercial business licensed by the competent entity.

(b) Whoever practices a commercial business as a street vendor or from a mobile car or cart licensed by the Ministry of Municipalities and Housing.

(c) Whoever practices a commercial business from among the productive families registered with the Social Development Bank.

(d) Whoever practices a commercial business as a micro-enterprise through business incubators licensed by the Small and Medium Enterprises General Authority.

2․ The licensed entities referred to in paragraph 1 of this article shall notify the registrar immediately upon issuing a license.

3․ The exemption of a merchant who practices a commercial business in accordance with paragraph 1 of this article does not prejudice him from being subject to the provisions imposed on merchants under the relevant laws.

Article 17 Policing Violations

An enforcement officer shall, when he detects violations of the provisions of the law, comply with the provisions of the law, the regulation, the laws, and related regulations and decisions, and shall also comply with the following:

(a) Presenting evidence of his official capacity and stating the purpose of his visit when performing his functions.

(b) Exercising due diligence when performing his functions and performing them with impartiality, integrity, and confidentiality.

(c) Disclosing any relationship or conflict of interest, if any.

(d) Visiting commercial premises for policing purposes during their daily working hours.

(e) Adhering to the code of ethics and the procedural guide for regulatory work approved by the ministry.

(f) Exercising the powers he is authorised with by the law and the regulation in accordance with the authority matrix issued by a decision of the minister.

Article 18
Fee

The fee for services related to the Commercial Register must be collected in accordance with the schedule attached to this regulation.

Article 19
Violation Classification Schedule

1․ The committee stipulated in article 23 of the law has the mandate to consider violations and impose the punishment stipulated in article 21 of the law, and it may reduce or increase the fine stipulated in the violations schedule mentioned in paragraph 2 of this article, based on the severity of the violation, its circumstances, its context, its impact, and the size of the establishment.

2․ ‏Violations are classified in accordance with the following schedule:

Violation	Severity of Violation	Warning for first violation	Fine
Failing to submit the annual data confirmation	Non-grievous	Applicable	– 500 Riyals for a sole proprietorship.- 1,600 Riyals for a joint stock company, simplified joint stock company, and foreign company branch – 1,200 Riyals for a limited liability company. – 1,000 Riyals for a general partnership and limited partnership.
Failing to update data	Non-grievous	Applicable	500 Riyals
Failing to display basic data through the Unified Electronic Code in a conspicuous place inside and outside the establishment	Non-grievous	Applicable	1,000 Riyals
Failing to submit bank account details	Non-grievous	Applicable	1,000 Riyals
Practicing a commercial activity without registration in the Commercial Register	Non-grievous	Applicable	5,000 Riyals
A merchant providing incorrect data in the Commercial Register that misleads	Grievous	Inapplicable	10,000 Riyals

Article 20

Means of Notification Notification, as mentioned in the law and the regulation, produces its legal effects if it is done by one of the following means:

(a) Text messages sent to a mobile phone number registered in the Commercial Register.

(b) Email registered in the Commercial Register.

(c) Any of the accounts registered in government electronic systems.

(d) Licensed postal services through the address of the establishment recorded in the registration application or the license or the national address, and notification through them is achieved by submission of a receipt from the postal service provider confirming delivery of the notification to the address.

Article 21

Entry into Force of Regulation The regulation must be published in the official gazette, and comes into force from the date of entry into force of the law.

Attachment 1
Fees for Services Related to the Commercial Register

Service	Merchant Classification	Fee
Registration in the Commercial Register	Sole proprietorship	500 Riyals
	Joint stock company, simplified joint stock company, and foreign company branch	1,600 Riyals
	Limited liability company	1,200 Riyals
	General partnership and limited partnership	1,000 Riyals
Annual data confirmation	Sole proprietorship	500 Riyals
	Joint stock company, simplified joint stock company, and foreign company branch	1,600 Riyals
	Limited liability company	1,200 Riyals
	General partnership and limited partnership	1,000 Riyals
Commercial registration update	All merchants	100 Riyals per update
Detailed data extract of registration in the Commercial Register	All merchants	100 Riyals

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Published in Umm Al-Qura 5079 issued on 30 March 2025.

Arabic

Issued by Ministry of Commerce Decision 288

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Article 1
Definitions

1․ Words and phrases provided in this regulation have the meanings assigned to each of them in article 1 of the Trade Names Law issued by Royal Decree D/83 dated 19 Rabi Al-Awwal 1446 [22 September 2024].

2․ The following words and phrases—wherever they appear in this regulation—have the meanings assigned to each of them:

Reservation:
Retaining a specific trade name for a temporary period before its registration in the Commercial Register.

Registration:
Recording and publishing the data of a merchant and any subsequent amendments to it in the Commercial Register.

Article 2
Reservation or Registration of Trade Name

1‏. Trade name reservation or registration must be in Arabic or English.

2‏. If there is an application to reserve or register a trade name in English, the name must be written in English letters accompanied by the name in Arabic letters.

3․ ‏A foreign investor may reserve or register his trade name, provided that it is accompanied by the name in Arabic letters, without prejudice to the provisions of the law and the regulation.

4․ If there is an application to reserve or register a trade name comprising numbers, it must not exceed nine numbers.

Article 3
Reservation or Registration of Personal Name of Merchant and Family Name

1․ The reservation or registration of the personal name of a merchant must be with the same triple or quadruple name as stated in the personal identification cards.

2․ It is permitted to reserve or register a family name as a trade name if the name is composed of two or more family names, in accordance with the provisions of the law, provided that the beneficiaries of the reservation or registration bear the same family name as stated in their personal identification cards.

3‏. The transfer of ownership of a family name is restricted to those who bear the same family name as stated in their personal identification cards.

Article 4
Reservation or Registration of the Name Saudi and the Names of Cities, Regions, and Public Places

1․ ‏It is permitted to reserve or register the name “Saudi” or the names of cities, regions, or public places within the Kingdom in accordance with the following controls:

(a) The name must not be identical or similar to the name of a government entity or its equivalent.

(b) The name must not be the main component or the essential element of the trade name.

(c) The merchant must commit, when reserving or registering the name, to not harm, distort, or offend the reputation of the Kingdom, cities, regions, and public places.

(d) Submitting approval from the Royal Commission for Makkah City and Holy Sites or the Al Madina Development Authority—each within their respective mandates—when reserving or registering the names of the cities “Makkah” or “Al-Madinah al-Munawwarah.”

2․ ‏The provisions of paragraph 1 of this article apply to applications for the transfer of ownership of a trade name that includes the name “Saudi” or the names of cities, regions, or public places.

3․ ‏The provisions of paragraph 1 of this article exclude an application for reservation or registration submitted by an entity based on a legal document, and for companies where one of them bears the name “Saudi” or the names of cities, regions, or public places upon merger.

Article 5
Criteria for Similarity of Trade Names

1․ A trade name is considered similar to another trade name if the form of its spelling resembles a reserved, registered, or globally famous trade name, based on criteria determined by the registrar, including the following:

(a) The spelling is identical, with a different order of wording.

(b) The spelling is identical, with a difference of one letter.

(c) The spelling is identical, with the addition, deletion, or change of pronouns, the dual form, the plural form, or the definite article “Al-”.

(d) The pronunciation of a number or letter is identical to the phrase, or vice versa.

2․ The provisions of paragraph 1 of this article apply to a trade name in English in accordance with its corresponding Arabic letters.

3․ The registrar shall reject an application to reserve or register a trade name if it finds that it is similar to another reserved or registered trade name.

4‏. The ministry shall create a list of prominent words that are not considered distinctive for a trade name and shall update it periodically.

Article 6
Data of Trade Name Reservation

An application for reserving a trade name must be submitted to the registrar, and it must include the following data:

(a) The trade name that the beneficiary wishes to reserve.

(b) The name of the reservation beneficiary, his identification number, and contact details.

Article 7
Deciding on an Application to Reserve or Register a Trade Name

The registrar shall decide on an application for reservation or registration of a trade name that fulfils the required data within ten days from the date of its submission, and the registrar may extend this period for a maximum of 30 days if deciding on the application requires the approval of related entities.

Article 8
Trade Name Reservation Duration and Controls

1․ ‏The duration of a trade name reservation is 60 days from the date of acceptance by the registrar of the application. The applicant for reservation may request an extension of this duration for a similar duration before its expiry, and extensions exceeding this must be granted based on cases determined by the registrar.

2․ ‏It is not permitted to use or dispose of a reserved trade name until it is registered in the Commercial Register.

Article 9
Publication of a Trade Name Whose Reservation is Accepted

If the registrar accepts the reservation of a trade name, it shall publicize it in the Commercial Register, including the following information:

(a) Trade name.

(b) Name of the reservation beneficiary.

(c) Reservation date.

Article 10
Trade Name Amendment Application

The conditions and procedures for applying for an amendment to a registered trade name must be the same as the procedures and conditions for submitting a new trade name registration application.

Article 11
Disposal of Trade Name

1․ The disposal of a trade name is limited to a distinctive or family trade name, in accordance with the forms prepared by the ministry.

2․ The rights and obligations that were previously established under a trade name do not transfer to the acquirer of the trade name without the store, unless otherwise agreed upon with all creditors.

Article 12
Deletion of Registered Trade Name

1․ The registrar shall, before deleting the registration of a trade name in the implementation of article 13(1)(a) and (b) of the law, notify the merchant to register a new trade name to replace the deleted one within 30 days.

2․ ‏If a merchant whose trade name registration has been deleted does not register a trade name to replace the deleted name within the period referred to in paragraph 1 of this article, the registrar shall delete the trade name and register the following in its place, as the case may be:

(a) Personal name of the natural person merchant.

(b) Commercial registration number of the legal person merchant.

3‏. The registrar shall, in the implementation of article 13(3) of the law, reserve the trade name for a duration of 60 days. A merchant may apply for an extension of the reservation and may use or dispose of it after its registration in the Commercial Register.

Article 13
Policing Violations

An enforcement officer shall, when he detects violations of the provisions of the law, comply with the provisions of the law, the regulation, the laws, and related regulations and decisions, and shall also comply with the following:

(a) Presenting evidence of his official capacity and stating the purpose of his visit when performing his functions.

(b) Exercising due diligence when performing his functions and performing them with impartiality, integrity, and confidentiality.

(c) Disclosing any relationship or conflict of interest, if any.

(d) Visiting commercial premises for policing purposes during their daily working hours.

(e) Adhering to the code of ethics and the procedural guide for regulatory work approved by the ministry.

(f) Exercising the powers he is authorised with by the law and the regulation in accordance with the authority matrix issued by a decision of the minister.

Article 14
Fee

The fee for services related to trade names must be collected in accordance with the schedule attached to this regulation.

Article 15
Violation Classification Schedule

1․ The committee stipulated in article 16 of the law has the mandate to consider violations and impose the punishment stipulated in article 14 of the law, and it may reduce or increase the fine stipulated in the violations schedule mentioned in paragraph 2 of this article, based on the severity of the violation, its circumstances, its context, its impact, and the size of the establishment.

2․ ‏Violations are classified in accordance with the following schedule:

Violation	Severity of Violation	Warning for first violation	Fine
Failure of a merchant to display his trade name in his documents, correspondence, or printed material	Non-grievous	Applicable	1,000 Riyals
Failure of a merchant to display his trade name on the facade of his place of commercial business	Non-grievous	Applicable	1,000 Riyals
Failure of a merchant to register a trade name within the legal period as a replacement for his deleted trade name	Non-grievous	Applicable	5,000 Riyals
Use by a merchant of his trade name in a manner that violates the provisions of the law or misleads	Non-grievous	Applicable	5,000 Riyals
Use by a merchant of a trade name without registering it in the Commercial Register	Non-grievous	Applicable	5,000 Riyals
Use by a merchant of a reserved or registered trade name of another merchant	Non-grievous	Applicable	10,000 Riyals

3․ The committee shall review cases of trade name reservation or registration that violate the law in accordance with article 12(1)(a) of the law and article 13(1)(a) of the law, and shall issue a decision regarding this in accordance with the provisions of the law and the regulation.

Article 16
Means of Notification

Notification, as mentioned in the law and the regulation, produces its legal effects if it is done by one of the following means:

(a) Text messages sent to a registered mobile phone number.

(b) Registered email.

(c) Any of the accounts registered in government electronic systems.

(d) Licensed postal services through the address of the establishment recorded in the registration application or the license or the national address, and notification through them is achieved by submission of a receipt from the postal service provider confirming delivery of the notification to the address.

Article 17
Arabic Language Experts

The work of Arabic language experts in the Commercial Register must be displayed in accordance with a mechanism that specifies the controls and procedures through one of the Arabic language platforms adopted by the ministry.

Article 18
Entry Into Force of the Regulation

The regulation must be published in the official gazette and comes into force from the date of entry into force of the law.

Attachment 1
Fees for Services Related to Trade Names

Service	Fee
Reserving a trade name in Arabic	200 Riyals
Reserving a trade name in English	500 Riyals
Extending a trade name reservation period	100 Riyals
Disposing of a trade name	100 Riyals

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Published in Umm Al-Qura 5079 issued on 30 March 2025.

Arabic

Issued by Ministry of Commerce Decision 288

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This mechanism is based on clause Third of Royal Decree D/83 dated 19 Rabi Al-Awwal 1446 [22 September 2024], stipulating that “those registered in the Commercial Register must be granted a period of five years starting from the date of entry into force of the law referred to in clause First of this decree, to rectify the status of their sub-commercial registrations, and all their sub-registrations must be deleted upon the expiration of that deadline in accordance with a mechanism determined by the Ministry of Commerce.”

‏1. Deadline for Rectifying the Status of Sub-commercial Registrations

A merchant shall rectify the status of his sub-commercial registration with the registrar within five years from the date of the entry into force of the law on 3 April 2025, and before the expiry of the rectification deadline on 2 April 2030.

2․ Options for Rectifying the Sub-commercial Registration

The rectification of the sub-commercial registration of a company or a natural person merchant must be done through the following:

(a) Transferring the sub-commercial registration by establishing a new company.

(b) Transferring the sub-commercial registration to another person not registered in the Commercial Register.

(c) Deleting the sub-commercial registration.

‏3. Licenses, Approvals, and Activities Associated with the Sub-commercial Registration

(a) In the event that a sub-commercial registration is rectified by establishing a new company, the licenses, approvals, and activities of the sub-commercial registration must be linked to the new company, in accordance with the provisions of the Companies Law and without prejudice to the rights of creditors and the related laws and regulations.

(b) In the event that a sub-commercial registration is rectified by transferring it to another person, the licenses, approvals, and activities of the sub-commercial registration must be linked to the successor, in accordance with the provisions of the Trade Names Law and without prejudice to the rights of creditors and the related laws and regulations.

(c) In the event that the sub-commercial registration is rectified by deleting it, the licenses, approvals, and activities of the sub-commercial registration must be linked to the main commercial registration.

‏4. Transfer of the Licenses, Approvals, and Activities Related to the Sub-commercial Registration

The transfer of licenses, approvals, and activities related to the sub-commercial registration must be in accordance with clause 3 of this mechanism from the date of rectification of the sub-commercial registration or the expiry of the deadline specified in clause 1 of this mechanism, whichever is earlier, without prejudice to the relevant laws and regulations.

5. Continue to Confirm the Details of the Sub-commercial Registration Until It Is Rectified

The merchant shall confirm the details of his sub-commercial registration within the deadline specified in clause 1 of this mechanism in the event that annual confirmation is due, and the provisions of the annual confirmation provided in the Commercial Register Law and its executive regulation apply to him until the rectification of his sub-commercial registration is completed or the deadline specified in clause 1 of this mechanism expires, whichever is earlier.

‏6. Deleting the Sub-commercial Registration Upon the Expiration of the Specified Deadline

The registrar shall delete all sub-commercial registrations upon the expiry of the deadline specified in clause 1 of this mechanism. The registrar shall reserve the trade name associated with the sub-commercial registration from the date of its deletion for a period of 60 days. The merchant may extend the reservation and may use or dispose of it after its registration in the Commercial Register.

‏7. The Fees for Services Related to the Sub-commercial Registration

The fee stipulated in the Executive Regulation of the Commercial Register Law applies to services related to the sub-commercial registration.

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Published in Umm Al-Qura 5079 issued on 30 March 2025.

Arabic

Issued by Ministry of Commerce Decision 288

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These controls are based on clause Fourth of Royal Decree D/83 dated 19 Rabi Al-Awwal 1446 [22 September 2024], which stipulate that “the provisions of the law—referred to in clause Second of this decree—do not prejudice ‏the registered trade names before its entry into force as determined by the Ministry of Commerce.”

‏1. Controls for the Practice of the Owner of the Existing Trade Name Associated with the Activity

A merchant whose trade name is associated with an activity may practice this activity and all activities registered for him in his commercial registration before the entry into force of the Trade Names Law. He may restrict any other activity after the law comes into force, in accordance with the following controls:

(a) That there is no trade name identical to it registered in the Commercial Register, for which no specific activity is associated with its name.

(b) That there is no trade name identical to it registered in the Commercial Register, for which the same activity is associated with its name.

 (c) That the same activity is not registered in the Commercial Register under another trade name that is identical to it.

‏2. Controls for the Practice of an Existing Trade Name Not Associated with the Activity

A merchant whose trade name is not associated with an activity may practice all activities registered for him in his commercial registration before the entry into force of the Trade Names Law. He may restrict any other activity after the law comes into force, in accordance with the following controls:

(a) That there is no trade name identical to it registered in the Commercial Register, for which the same activity is associated with its name.

 (b) That the same activity is not registered in the Commercial Register under another trade name that is identical to it.

‏3. Registration of a New Trade Name

If the merchant wishes to register any other activity after the law comes into force and does not meet the controls provided in clauses 1 or 2 of these controls, he may register a new trade name in accordance with the provisions of the Trade Names Law.

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Published in Umm Al-Qura 5079 issued on 30 March 2025.

Arabic

Issued by Board of Directors of the Zakat, Tax, and Customs Authority Decision 25-02-03 Dated 16 Ramadan 1446 [16 March 2025]

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Introduction

With reference to Council of Ministers Decision 748 dated 2 Ramadan 1445 [12 March 2024] approving in its clause First the transfer of the licensing mandate for the customs consultancy profession and the mandates relating to it from the Ministry of Commerce to the Zakat, Tax, and Customs Authority, in accordance with the procedures specified in the same decision.

In an effort by the authority to control and monitor the activity of customs consultancy, and to manage and govern the relationship between the authority and practitioners of the customs consultancy profession, to raise the level of efficiency of the customs consultancy sector after transferring its mandate to it.

Accordingly, the authority has worked on preparing these controls aimed at clarifying the conditions necessary to obtain a license to practice the customs consultancy profession. These controls also include the procedures for submitting an application for issuing the license, and they also include the obligations and responsibilities of the licensee, cases of cancellation of the license, and punishments for violating the provisions of these controls.

Article 1
Definitions

The following words and phrases—wherever they appear in these controls—have the meanings assigned to each of them, unless the context requires otherwise:

Authority:
The Zakat, Tax, and Customs Authority.

Board:
The board of directors of the authority.

Governor:
The governor of the authority.

Controls:
The Controls for Licensing the Customs Consultancy Profession.

Profession:
The profession of customs consultancy and the services relating to it.

License:
A document issued by the authority granting the licensee the authority to practice the profession.

Licensee:
A natural person licensed by the authority to practice the profession.

Register:
The register of persons licensed to practice the profession.

Article 2
Scope of Application

A licensee and whoever applies for a license to practice the profession of providing customs consultancy in the Kingdom, including providing consultancy relating to tariffs, customs value, rules of origin, and any advice relating to customs procedures, are subject to the provisions of these controls.

Article 3
Registration of the Licensee

The authority shall prepare a register for registered licensees to practice the profession, which must contain the following data:

1․ The name of the licensee and his identity number; the date, number, and expiry date of the license to practice the profession; and the data of previous licenses, if any.

2․ The name of the office or company in which the profession is practiced.

3․ Any other data related to the license that the authority deems important.

Article 4
License

1․ It is prohibited to practise the profession except after obtaining a license from the authority in accordance with the provisions of these controls.

2․ As an exception to paragraph 1 of this article, licenses existing before the issuance of these controls are valid, and must be renewed in accordance with the provisions of these controls.

Article 5
Licensing Requirements

The following conditions must be met to license the practice of the profession:

1․ That the applicant is a Saudi national.

2․ That he is available full-time to work in the profession.

3․ That he holds at least a bachelor’s degree from a recognised university or college in the Kingdom or any other degree from outside the Kingdom equated by the Ministry of Education.

4․ That he has relevant experience or relating to the nature of work for a period not less than three years after obtaining the bachelor’s qualification.

5․ That he passes the professional test specified by the authority.

6․ That he is of good conduct and behaviour and has not been convicted of a crime against honour and trust unless he has been rehabilitated.

7․ That a final decision in a customs smuggling crime or a tax evasion punishment, a disciplinary decision to dismiss from government service, or a final decision to cancel the customs clearance license has not been issued against him, unless three years have passed since the issuance of the decision.

Article 6
Application Procedures

1․ The license application must be submitted through channels approved by the authority.

2․ The application must include all supporting data and documents as specified by the authority.

3․ The license application must be cancelled after 30 days, in the event that the applicant does not meet all the necessary requirements.

4․ The authority shall review the license application and issue its decision in this regard within 30 days from the date of submitting the application.

5․ A licensee must be granted, after his registration in the register, a license to practise the profession, valid for a period of three years starting from the date of its issuance. The authority may renew it for a similar period on the basis of an application from the licensee.

6․ A licensee shall apply for renewal of the license 60 days before the expiry of its term.

Article 7
Obligations of the Licensee

A licensee shall comply with the following:

1․ Informing the authority of its headquarters, and notifying it in the event of its change within a period not exceeding 14 days.

2․ Complying with the systems and instructions issued by the authority or the relevant entities.

3․ Notifying the authority within five days in the event that the licensee incorporates a professional company or has shares in it, starting from the day following the date of its incorporation or having shares in it.

4․ Keeping copies of contracts and agreements signed with customers and any documents relating to them for a period of not less than five years. The authority may request any information or data that enables it to monitor the quality of the professional performance of the licensee.

5․ The licensee shall attend any training courses or programs specified by the authority.

6․ The licensee shall maintain the privacy and confidentiality of customer information and data, and shall not disclose any information relating to them. This continues after the end of the contractual relationship.

7․ If the licensee temporarily or permanently ceases or suspends practising the profession for any reason, he shall inform the authority of this within 30 days from the date of his cessation or suspension. The authority shall suspend the license until he submits an application to resume practising the profession, provided that the suspension period does not exceed 365 days or the expiry of the license—whichever is earlier—otherwise, the license is deemed cancelled.

Article 8
Liability of the Licensee

A licensee is liable for compensating others for damages arising from errors resulting from practising the profession.

Article 9
Cancellation of the License

The license must be cancelled in the following cases:

1․ At the request of the licensee.

2․ The expiry of the license period without applying for renewal.

3․ Ceasing to practice the profession for a period of one year.

4․ Death of the licensee.

5․ The issuance of a final judgment against the licensee by the competent court to impose a punishment restricting freedom as a result of his conviction in a crime against honour and trust, a final judgment in a customs smuggling or tax evasion crime, or a final decision to cancel the customs clearance license.

Article 10
Punishments

1․ Without prejudice to any punishment more severe stipulated in other laws, the licensee must be punished in the event of violation of the provisions of these controls with one of the following punishments:

(a) Warning.

(b) Suspending the license for a temporary period determined by the authority, provided that it does not exceed 60 days.

(c) Deleting the license.

2․ The authority may—at its discretion—summon the licensee to hear his statements before imposing the punishments mentioned in paragraph 1 of this article.

A person against whom a punishment decision is issued may file a grievance against it with the competent judicial entity.

Article 11
Reinstatement of the License

A licensee whose license is deleted may reapply for the license after three years from the issuance of the deletion decision. The requirements described in these controls must be followed when requesting the reinstatement of the license.

Article 12
Entry into Force

These controls must be issued by a decision of the board, and come into force from the date of their publication in the official gazette.

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Published in Umm Al-Qura 5082 issued on 18 April 2025.