Al Majdiah sees no material impact from Idle Land Tax

Dar Al Majed Real Estate Co. (Al Majdiah) does not expect a material impact on its financials as a result of implementing the White Land Tax Regulations

Dar Al Majed Real Estate Co. (Al Majdiah) said it does not expect a material impact on its financial position or operating plans from the implementation of the updated executive regulations of the Idle Land Tax.

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The company said in a statement to Tadawul that it reviewed its wholly owned portfolio, comprising operating income-generating projects and projects under execution, and concluded that such assets do not constitute idle land during operating or execution phases.

Al Majdiah added that all its projects with National Housing Co. (NHC) are not subject to the Idle Land Tax.

The company noted it had paid SAR 1.7 million in fees related to a completed project with a Certificate of Occupancy, for which a refund request has been submitted. It also has invoices totaling SAR 3.3 million under objection with authorities for projects that have already been constructed and received Certificates of Occupancy.

Al Majdiah said it will continue to follow regulatory procedures for the refund request and the disputed invoices, and will disclose any material developments or financial effects if they arise.