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June 26, 2026

This agreement prevents double taxation on income and capital for residents of Saudi Arabia and China. The covered taxes are Zakat and income tax for Saudi Arabia, and for China, the individual income tax and the income tax on enterprises with foreign investment and foreign enterprises. The treaty establishes maximum withholding tax rates: 5% for dividends (Article 10), 10% for income from debt-claims (Article 11), and 10% for royalties (Article 12). A notable provision exempts dividends paid to the government of the other state from tax. The protocol clarifies the definition of business profits.

Agreement between THE GOVERNMENT OF THE KINGDOM OF SAUDI ARABIA and THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA for the Avoidance of Double Taxation and the Prevention of Tax Evasion with respect to Taxes on Income and on Capital

The Government of the Kingdom of Saudi Arabia and the Government of the People's Republic of China,

DESIRING to conclude an Agreement for the avoidance of double taxation and the prevention of tax evasion with respect to taxes on income and on capital,

HAVE AGREED as follows:

Contents

Article 1 - Personal Scope

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 and Air 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 - Dependent Personal Services

Article 16 - Directors' Fees

Article 17 - Artistes and Sportspersons

Article 18 - Pensions

Article 19 - Government Service

Article 20 - Teachers and Researchers

Article 21 - Students

Article 22 - Other Income

Article 23 - Capital

Article 24 - Methods for Elimination of Double Taxation

Article 25 - Mutual Agreement Procedure

Article 26 - Exchange of Information

Article 27 - Diplomatic and Consular Officers

Article 28 - Entry into Force

Article 29 - Termination

Protocol

Article 1
Personal Scope

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

Article 1Personal Scope

Article 2Taxes Covered

Article 1
Personal Scope

Article 2
Taxes Covered