Thursday, December 3, 2020
Zakat and Tax in Saudi Arabia defines Exemptions from Residential Rent Tax
The General Authority for Zakat and Tax (GAZT) in Saudi Arabia revealed the categories that are exempt from the residential rental tax.
The response came from GAZT, after inquiring one of the beneficiaries saying, Is there a tax on residential rent for the accommodation of the company’s workers? Is it considered commercial? ”. Trending : Labor Department settled 31 million riyals for the families of deceased Expat workers
- The General Authority for Zakat and Tax Customer care was responded on its official Twitter, explaining, "Tax is exempt only from renting units eligible to be residential units and used as permanent housing, and the rental of serviced hotel apartments and hotels are subject to VAT at 15%, if leased by a person registered with VAT system."
- Saudi Arabia increased the VAT from 5% to 15% this year July, as part of additional measures taken to balance the economic impact of Corona crisis and due to reduction in government revenues through oil and because of reduced economic activities and increased in cost of healthcare services. See Also : Exercise walking without feeling bored in these ways - Ministry of Health
- Earlier, The Council has called the Real Estate General Authority to devise controls to stop dealing with cash at real estate brokerage offices as well as develop a data base to take stock of the number of buildings in the Kingdom and categorize them.
