Saudi Arabia Waives Off 15% VAT And Imposes New 5% Tax On Property Deals

5% Tax On Property Deals in Saudi Arabia

Same as most of the countries of the world, Saudi Arabia has also been affected by the ongoing pandemic. The biggest setback Saudi Arabia is facing is failing to make necessary infrastructure for the Saudi Vision 2030.

Saudi Arabia has been facing a hike in the employment rate. In the first quarter of 2020, Saudi Arabia had an unemployment rate was up to 6%. Saudi Arabia was already thinking about how to handle that, but the second quarter proved to be worse than that taking the unemployment rate to 15%.

So the Saudi Government had already made the VAT 15% on the property dealings to boost the budget gained through the transactions not related to oil, but this proved to be more damaging to the economy than helping it.

The King of Saudi Arabia has decided to impose a new tax of 5% on the land-related transactions, which will ultimately help the citizens to load off the burden.