In brief
Article 5 of the Regulations sets out when RETT may be paid after the transaction date. Real estate company share transfers allow 30 days from the earlier of transfer or unconditional agreement. Breached exemptions allow 30 days from the breach. Non-notarized disposals allow 30 days from the Article 4 date. Off-plan sales must be paid on or before notarization. ZATCA can require payment within 30 days of the disposal where deferral was the main purpose.
Article 4 tells you when the transaction happened. Article 5 tells you when you must pay. They are different questions, and the 2% monthly fine starts from the second.
The Provision: Exact Text
What It Means in Plain English
The RETT payment deadline is the transaction date by default, which in practice means before notarization. There are three exceptions with 30 days to pay: share transfers in real estate companies, breached exemptions and non-notarized disposals. Off-plan sales are paid at notarization. ZATCA can insist on payment within 30 days of the disposal where a transferor has deliberately arranged things to delay payment.
The Payment Timetable
| Transaction | Payment deadline | Source |
|---|---|---|
| Notarized sale | On or before notarization | Law Art. 5; Guideline 4.3 |
| Shares in a real estate company | 30 days from the earlier of transfer or unconditional agreement | Art. 5(A)(1) |
| Breached conditional exemption | 30 days from the breach | Art. 5(A)(2) |
| Non-notarized disposal (possession, usufruct over 50 years, BOOT, informal sale) | 30 days from the Article 4 date | Art. 5(B) |
| Off-plan sale | On or before notarization of the ownership transfer | Art. 5(C) |
| Deliberate deferral proven | Within 30 days of the disposal, as demanded by ZATCA | Art. 5(D) |
Breaking Down the Provision
5(A)(1): Share transfers
Share deals are not notarized like property, so Article 5 gives 30 days. Article 11(a)(7) requires the transaction to be registered with ZATCA by the same deadline. For a deal signed and completed on different dates, the clock runs from the earlier of the share transfer and the agreement becoming unconditional.
5(A)(2): Breached exemptions
The 30 days run from the breach, for example the sale of locked shares or a gifted property being passed on early. This is also why late-payment fines do not run back to the original exempt transaction. The payment period starts at the breach, and fines start only after it ends.
5(B): Non-notarized disposals
This applies whenever a disposal is not notarized, and it works with the dates in Article 4. The words “without prejudice to Paragraph (A)” mean that the specific share and breach rules take priority.
5(C): Off-plan
Off-plan buyers pay in stages to escrow, but RETT is paid at notarization of the ownership transfer, which is usually at or after completion.
5(D): Anti-deferral
If the transferor’s main purpose in structuring or timing the transaction was to delay paying the tax, ZATCA can require payment within 30 days of the disposal. The burden of proof rests with ZATCA (“proven to ZATCA”).
Worked Examples
Example 1: Share deal
An unconditional SPA for 35% of a real estate company is signed on 1 August, and the shares transfer on 20 August. The deadline runs from 1 August, so registration and payment are due by 31 August.
Example 2: Late payment on a usufruct
A 55-year usufruct is granted on 1 February, with RETT of SAR 600,000. It is paid on 15 May.
- Deadline: 3 March (30 days).
- The fine covers 3 March to 15 May, which is 2 full months and part of a third, so 3 months × 2% = 6%: SAR 36,000.
Example 3: Off-plan apartment
A buyer signs an off-plan contract in 2026 and the unit is notarized in 2028. RETT is paid in 2028, on or before notarization. First-home support may cover the first SAR 1,000,000 for eligible citizens.
Grey Areas
| Situation | Our view |
|---|---|
| Staged share transfers under one agreement | Under Article 2(i), tax arises when the cumulative transfers reach 30%. ZATCA’s Example 2 dates it to the transfer that crosses the threshold. Pay within 30 days of that transfer. |
| An SPA deliberately left “conditional” on a trivial condition | This is the kind of case Article 5(D), and possibly Article 6, targets. Do not rely on artificial conditions. |
Compliance Checklist
- Fix the transaction date (notarization, or Article 4).
- Work out the Article 5 deadline and diary it.
- Register on ZATCA’s portal. For share deals, the registration deadline is the payment deadline.
- Pay the invoice, keep the confirmation, and complete notarization where relevant.
Common Mistakes
- Using the share transfer date when the agreement became unconditional earlier.
- Treating informal transfers as having no deadline.
- Missing 30-day deadlines after an exemption is breached.
The Bottom Line
Article 5 gives 30 days where there is no notary to enforce payment upfront, and it lets ZATCA withdraw that time from anyone using it to delay deliberately. For notarized and off-plan transactions, the rule is simpler: pay before the deed is signed.
Key takeaways
- The default under Article 5(2) of the RETT Law is payment on the transaction date. In practice, that means before the notary completes the transfer.
- Real estate company share transfers: pay within 30 days of the earlier of the share transfer or an unconditional agreement (Article 5(A)(1)).
- Breached conditional exemptions: pay within 30 days of the breach (Article 5(A)(2)).
- Non-notarized disposals: pay within 30 days of the transaction date fixed under Article 4 (Article 5(B)).
- Off-plan sales: pay on or before notarization of the ownership transfer (Article 5(C)).
- ZATCA can require payment within 30 days of the disposal where it is proven that delaying payment was the transferor's main purpose (Article 5(D)).
Frequently asked questions
When must RETT be paid in Saudi Arabia?
Generally on or before the transaction date. For notarized sales, that means before the notary completes the transfer. Article 5 of the RETT Implementing Regulations allows 30 days after the transaction date for real estate company share transfers, breached exemptions and non-notarized disposals.
How long do I have to pay RETT on a share transfer?
30 days from the earlier of the date the shares are transferred or the date an unconditional agreement to transfer them is concluded (Article 5(A)(1)). The transaction must also be registered on ZATCA's portal by that payment date (Article 11(a)(7)).
When is RETT due on an off-plan purchase?
On or before the date the ownership transfer is notarized with the notary or an accredited notary (Article 5(C)). RETT is not payable when the off-plan contract is signed.
What happens if RETT is paid late?
A fine of 2% of the unpaid tax for each month or part of a month applies, capped at 50% of the unpaid tax. It runs from the day after the payment deadline. ZATCA can also charge an additional 1% per month where it amends the tax due.
Can ZATCA shorten the payment period?
Yes. Under Article 5(D), if it is proven to ZATCA that delaying payment was the transferor's main purpose, ZATCA may require payment within 30 days of the disposal date.
Sources
Based on the RETT Law (Royal Decree No. M/84, effective 10 April 2025), the RETT Implementing Regulations (ZATCA Board Resolution No. 01-03-25 dated 24 March 2025, unofficial English translation) and ZATCA's Detailed RETT Guideline Version 6 (May 2026). The Arabic text prevails. This article is general information, not advice on any specific transaction. dariba.co is an independent knowledge platform and is not affiliated with ZATCA.
