The Saudi Zakat, Tax and Customs Authority has made amendments to regulations for the Real Estate Transactions Tax, including several exemptions. The tax on real estate disposal transactions entered into force in October 2020. The RETT applies to any legal action that results in transferring the ownership or possession of real estate property. A simple example is when a person sells or owns a house or land, he or she will be subjected to a transaction tax on disposal of real estate. Such transactions include contracts that transfer beneficial rights or long-term lease rights, such as sales, compensation, wills, donations, barter, leasing, financial leases, and transfer of shares in real estate companies, or an usufruct right determination for a period exceeding 50 years. The percentage of the RETT is 5 percent of the total value of any real estate transaction amount regardless of its condition, shape, or use at the time of disposal. This tax is applicable to land and what is being built on it. It is important also to note that this tax can be applied to the transactions of the entire property or any part of it. The regulation also included many exemptions, such as family or charitable endowments, dividing property for inheritance purposes, gifts and documented wills between relatives up to a third degree. Moreover, exemptions include licensed charitable organizations by providing evidence of endowment (Waqaf) but does not include disposals for the purpose of managing the endowment. Furthermore, the exemptions include any real estate transaction for a governmental entity, public legal persons, or entities and projects of public interest. The exemptions also include any forced or mandatory disposal of real estate in cases of expropriation for public benefit or the temporary seizure of the property. The same exemption applies to the temporary disposing of the real estate for the purpose of using it as a guarantee for financing or credit. However, if an execution is carried out on that property to permanently transfer it to the financier or to a third party, in this case, it will be considered a regular real estate transaction, and the RETT will apply. • Dimah Talal Alsharif is a Saudi legal consultant, head of the health law department at the law firm of Majed Garoub and a member of the International Association of Lawyers. Twitter: @dimah_alsharif