Riyadh – Mubasher: Mulkia Gulf Real Estate Investment Traded Fund (Mulkia REIT Fund) announced that it will start applying a 5% value added tax (VAT) on the fund’s fees and services, effective 1 January 2018.
The VAT is composite tax that is imposed on the differential between cost and selling prices of products, it is indirect tax, and applied on production cost.
Saudi Arabia will put VAT into effect by the beginning of 2018.
In August, the Saudi Capital Market Authority (CMA) approved Mulkia Investment’s request to implement the fund's initial public offering (IPO) on the
Saudi Stock Exchange (Tadawul).
The fund’s volume amounted to SAR 600 million at SAR 10 per unit.
