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This Convention applies to residents of both states (Article 1) and covers taxes on income and capital, including Zakat and Italian corporate/personal income tax (Article 2). It defines Permanent Establishment (Article 5) and sets withholding tax rates for dividends at 5% for significant holdings and 10% otherwise (Article 10), income from debt-claims at 5% (Article 11), and royalties at 10% (Article 12). Article 24 outlines the method for eliminating double taxation, typically through a tax credit system, to prevent fiscal evasion and promote economic cooperation between Saudi Arabia and Italy.

Convention between the Government of the KINGDOM OF SAUDI ARABIA and the Government of the ITALIAN REPUBLIC for the avoidance of double taxation with respect to taxes on income and on capital and the prevention of tax evasion.

The Government of the Kingdom of Saudi Arabia and the Government of the Italian Republic,

Desiring to conclude a Convention to avoid double taxation with respect to taxes on income and on capital and to prevent tax evasion

Have agreed as follows:

Contents

CHAPTER I - SCOPE OF THE CONVENTION

Article 1 - Personal Scope

Article 2 - Taxes Covered

CHAPTER II - DEFINITIONS

Article 3 - Definitions

Article 4 - Resident

Article 5 - Permanent Establishment

CHAPTER III - TAXATION OF INCOME

Article 6 - Income from Immovable Property

Article 7 - Business Profits

Article 8 - Shipping 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 Sportsmen

Article 18 - Pensions

Article 19 - Government Service

Article 20 - Teachers and Researchers

Article 21 - Students

Article 22 - Other Income

CHAPTER IV - TAXATION OF CAPITAL

Article 23 - Capital

CHAPTER V - METHODS FOR ELIMINATION OF DOUBLE TAXATION

Article 24 - Elimination of Double Taxation

CHAPTER VI - SPECIAL PROVISIONS

Article 25 - Mutual Agreement Procedure

Article 26 - Exchange of Information

Article 27 - Diplomatic Agents and Consular Officers

Article 28 - Refunds

Article 29 - Miscellaneous Provisions

CHAPTER VII - FINAL PROVISIONS

Article 30

Article 31 - Termination

Additional Protocol

CHAPTER I - SCOPE OF THE CONVENTION

Article 1
Personal Scope

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

CHAPTER I - SCOPE OF THE CONVENTION

Article 1Personal Scope

Article 2Taxes Covered

Article 1
Personal Scope

Article 2
Taxes Covered