• 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

©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International.

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.

The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Direct comments, including requests for subscriptions, to
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.


Share this

Share this


Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)

Already a Subscriber? Login

Not a member? Subscribe now