Saudi Arabia imposes new tax on property deals, exempts them from VAT

Saudi Arabia will exempt real estate transactions from a 15% value-added tax and instead impose a new 5% tax on property deals, said a royal order issued by King Salman on Friday.

The kingdom's finance minister said on Twitter that the order, which was carried on state media, aimed to help spur economic growth and provide support for Saudi citizens. The world's largest oil exporter is facing a deep recession with the economy shrinking by 7% in the second quarter amid low crude prices and the COVID-19 pandemic.