Responsibilities of Financing Entities
| No: 747280000067 | Date(g): 3/11/2018 | Date(h): 24/2/1440 | Status: In-Force |
Translated Document
Effective from Aug 01 2019 - Jul 31 2019
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| 1) | If the purchase is made from a developer registered with the Authority: | ||
| 1.1. | The financer will receive the certificate from the beneficiary and any additional tax amounts if the value of the residential unit exceeds 850,000 SAR. The beneficiary must also sign a commitment not to present the certificate to any other financing entity or developer. The financer will then issue a sales invoice for the full tax amount (certificate value + any additional tax amounts). | ||
| 1.2. | The financer will provide the certificate and any additional tax amounts if the value of the residential unit exceeds 850,000 SAR to the developer, and will receive a purchase invoice for the full tax amount (certificate value + any additional tax amounts). | ||
| 1.3. | The financer must record the full tax amount (certificate value + any additional tax amounts) for both sale and purchase in their tax declarations for the above-mentioned case. | ||
| 2) | If the purchase is made from a developer not registered with the Authority. | ||
| 2.1. | No tax amounts are to be paid to the developer. | ||
| 2.2. | The financer should submit a refund request through the portal and attach the deed after transfer of ownership, the sales invoice, financing contract, and the Authority’s declaration confirming the developer’s tax registration eligibility. | ||