Law of White Land is a law that imposes annual fees on white lands to achieve real estate balance, provide residential lands at reasonable prices, protect fair competition, and combat monopolistic practices. It was issued by Royal Decree in 2015.
White land taxes
The law imposes an annual fee of 2.5 percent of the value of the land on white lands owned by one or more natural or non-governmental legal persons. The criteria for the assessment of land value cover the location and uses of the land, building codes, and the availability of public services and public utilities.
Implementing Regulations of the Law of White Land
The Implementing Regulations of the Law of White Land specify the timeline for gradual taxation, the criteria for determining lands subject to taxation, the conditions for non-taxation, and the procedures necessary for ensuring fair taxation and preventing tax evasion.
The regulations also specify the criteria for determining the availability of public services and public utilities, the criteria for identifying the obstacles that prevent the issuance of permits and approvals necessary for the development or construction of lands, which form the basis for non-taxation, the agencies responsible for tax collection and the rules and procedures thereof, and the manner of notifying landowners of decisions issued against them.
Responsibility of the owners of white lands
The law has specified the responsibilities of owners of white lands declared subject to taxation, inviting them to provide the Ministry of Municipalities and Housing with the documents and data related to such lands within a period not exceeding six months from the date of declaration. Landowners shall be notified of the decision subjecting their lands to taxation and the amount of tax due in accordance with the manner of notification specified in the regulations.
Law of White Land sanctions
The law has determined the sanctions imposed on any person who violates the provisions of the law and regulations, imposing a fine not exceeding the amount of tax due on his land. This does not relieve him from payment of such amount.
By decision of the Minister of Municipalities and Housing, a committee is formed to review violations of the provisions of the law and regulations, impose penalties, consider filed objections, and issue necessary decisions. The committee must have at least three members. The committee's decisions may be appealed before the competent administrative court.
Landowners may challenge the decisions subjecting their lands to taxation or the decisions related to land value assessment and determination of tax amount. The challenge is filed in writing with the committee within sixty days from the date of notification of the decision. The committee decides on the challenge within sixty days from the date of filing. A challenge is deemed to have been dismissed if a decision thereon is not rendered within sixty days from the date of filing.
Law of White Land Tax taxes and fines
Amounts of taxes and fines collected by virtue of the Law of White Land are deposited in a special account with the Saudi Arabian Monetary Authority (currently the Saudi Central Bank) and are allocated for expenditure on housing projects, public utilities, and public services.
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