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  • Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 10/29/2013

Saudi Arabia - International tax agreements, income tax treaties 

October 29: Saudi Arabia signed the OECD’s Multilateral Convention on Mutual Administrative Assistance in Tax Matters, thus providing for spontaneous exchange of information, simultaneous tax examinations, and assistance in tax collection.

Saudi Arabia also signed an income tax treaty with Luxembourg.

Claiming tax treaty rates

In the past, the Saudi Department of Zakat and Income Tax (DZIT) followed a “pay-first-claim-later” approach to withholding taxes, requiring payers to withhold amounts under domestic law and then requiring non-resident recipients to file a refund claim to obtain treaty benefits.


Under a newly issued circular, Saudi resident payers now have an option to apply withholding tax at reduced treaty rates, provided certain conditions are satisfied.


Read an October 2013 report prepared by KPMG International: Saudi Arabia – Easing tax administration and strengthening tax audits




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