1Version 6 | May 2026

A fine not exceeding three times the amount of the tax subject of the evasion. Violation of any provision of the Real Estate Transaction Tax Law and its Implementing Regulations. This includes, for example but not limited to, refusing to provide the data and documents requested by the Zakat, Tax and Customs Authority from the assignor and assignee regarding the real estate transaction subject to tax. A fine not exceeding the amount of the tax due or fifty thousand riyals (50,000 SAR), whichever is greater. Failure to pay the tax due within the legally specified period. A fine equal to (2%) of the unpaid tax amount for each month or part thereof for which the tax remains unpaid, provided it does not exceed (50%) of the unpaid tax amount. Calculation of the fine shall commence from the day following the expiration of the period set for payment of the tax due. In the event the Authority amends the amount of the unpaid tax due. An additional fine equal to (1%) of the unpaid tax amount for each month or part thereof shall be imposed. The Authority sets the level of the fine or penalty imposed by the Authority on the person subject to tax, according to a classification set by the Board for violations and corresponding penalties. Additionally, penalties are signed by a decision of the Governor of the Authority, and the imposition of penalties does not preclude the collection of the tax due. 7.2 Transitional Provisions for Transactions Concluded Before the Effective Date of the Real Estate Transaction Tax Law and its Implementing Regulations. Regarding real estate transactions for which tax became due prior to the effective date of the Law, the Authority shall have the power to verify the value of the transaction, recalculate the due tax, and claim its payment according to specific limitation periods. The Authority shall exercise this power within a period not exceeding three (3) years in the following cases: 1. Disclosed Transactions to the Authority: The Authority has the right, within three (3) years from the effective date of the Law, to verify the value of the real estate transaction, recalculate the due tax, and claim its payment if it is established that the disclosed value is less than the fair market value, regarding the transactions that were registered with the Authority before the Law became effective. 2. Undisclosed Transactions: The Authority has the right, within three (3) years from the date of its knowledge of the real estate transaction or from the effective date of the Law—whichever is later—to verify the value of the transaction, recalculate the due tax, and claim its payment when it is established that the value dealt with is less than the fair market value, regarding transactions that were not disclosed to the Authority before the Law became effective. 3. Non-prejudice to the Authority’s rights when there is a violation of the restrictions of the exemptions effective before the Law: The aforementioned limitation periods shall not affect the Authority’s right to claim payment of the due tax if the statutory restrictions related to exemptions under the regulations effective at the time of the transaction are violated. Treatment of Fines for Periods Prior to the Law: Regarding the tax due for real estate transactions prior to the effective date of the Law, the fines for non-payment or delay shall be subject to the provisions contained in the previous Implementing Regulations for Real Estate Transaction Tax (issued by Ministerial Resolution No. 712) and its amendments, for the period prior to the Law. As for fines related to the period following the Law’s effectiveness, they shall be calculated according to the provisions of the Law and the current Implementing Regulations. In all cases, the amount of the calculated fines may not exceed 50% of the value of the unpaid tax after the effective date of the Law. Tax Refund Period Related to the Previous Regulations