Hammoud Al-Harbi, spokesperson for the Zakat, Tax, and Customs Authority (ZATCA), announced that the Real Estate Transaction Tax (RETT) system introduces expanded tax exemptions, which are expected to positively impact Saudi Arabia's real estate sector. The system imposes a fixed 5% tax on real estate transactions while establishing clear regulatory guidelines to support social and economic objectives. Among the new exemptions are indirect real estate transactions in cases of trading and investment funds, transactions linked to mergers and acquisitions, and court-ordered compulsory transactions.

Al-Harbi also highlighted the system’s enhanced flexibility, including a reduction in penalties for tax evasion or late payment from 5% to 2%, and the limitation of the tax assessment period to three years. These measures aim to promote transparency in the real estate market, encourage tax compliance, and foster sector growth and economic sustainability. This update follows the Council of Ministers' approval of the RETT system, as published by Umm Al-Qura newspaper in October.