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This agreement covers taxes on income and capital, notably including Zakat for Saudi Arabia (Article 2). It establishes a maximum withholding tax rate of 5% on dividends (Article 10). Income from debt claims (interest) paid to a beneficial owner is taxable only in the recipient's state of residence (Article 11). The withholding tax rate for royalties is set at 10% (Article 12). Government investments are explicitly exempt from tax in the other state (Article 27). Double taxation is eliminated through the tax credit method for both countries (Article 24).

Agreement between the Government of the KINGDOM OF SAUDI ARABIA and the Government of the UNITED ARAB EMIRATES on Tax Matters to avoid Double Taxation

The Government of the Kingdom of Saudi Arabia and the Government of the United Arab Emirates,

Desiring to further develop their economic relationship and to enhance their cooperation in tax matters,

Intending to conclude a Convention to avoid double taxation in respect of taxes on income and capital without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance (including through the treaty-shopping arrangements aimed at obtaining reliefs provided in this convention for the indirect benefit of residents of a third State), have agreed as follows:

Contents

Article 1 - Person covered

Article 2 - Taxes covered

Article 3 - General definitions

Article 4 - Resident

Article 5 - Permanent establishment

Article 6 - Income from immovable property

Article 7 - Business profits

Article 8 - Shipping, air transport and land transport

Article 9 - Associated Enterprises

Article 10 - Dividends

Article 11 - Income from debt claims

Article 12 - Royalties

Article 13 - Capital gains

Article 14 - Independent personal services

Article 15 - Non-independent personal services

Article 16 - Directors' fees

Article 17 - Artists and sportspersons

Article 18 - Pensions

Article 19 - Government services

Article 20 - Students

Article 21 - Teachers and Researchers

Article 22 - Other income

Article 23 - Capital

Article 24 - Methods of elimination of double taxation

Article 25 - Mutual agreement Procedure

Article 26 - Exchange of information

Article 27 - Special provisions

Article 28 - Members of diplomatic and consular missions

Article 29 - Miscellaneous provisions

Article 30 - Entry into force

Article 31 - Termination

Article 1
Person covered

This Convention shall apply to persons who are residents of one or both of the Contracting States.

Article 2
Taxes covered

This is an unofficial / best effort translation

Article 1Person covered

Article 2Taxes covered

Article 1
Person covered

Article 2
Taxes covered