Double Taxation Convention – Saudi Arabia
There have been a number of recent announcements in relation to new and modified double taxation agreements. The latest refers to a Double Taxation Convention between the UK and Saudi Arabia. This agreement was signed back in October 2007 but only came into force on 1 January 2009 and will not take effect until April 2010.
The convention seeks to avoid double taxation arising in relation to income tax, corporation tax, capital gains tax and similar taxes imposed by the Kingdom of Saudi Arabia known currently as the Zakat and income tax (including natural gas investment tax).
The convention will take effect in the UK from 1 April 2010 in relation to corporation tax and from 6 April 2010 in relation to income tax and capital gains tax. The provisions will apply from 1 January 2010 in Saudi Arabia.