Interpretation and Application of Agreements for Avoidance of Double Taxation
The main objective of the agreements to avoid double taxation is to facilitate the movement of trade and investment between countries through the provisions contained in these agreements that aim to avoid imposing a tax more than once on the income realized by the investor/taxpayer according to specific controls and conditions. These agreements give Saudi investors abroad, as well as foreign investors in the Kingdom, benefits that may not be clear to them. Our office explains these benefits to investors in light of the provisions and application of the tax agreements, and among the most prominent points in that are the tax benefits granted by the agreements to Saudi investors abroad, the issue of permanent establishment in the Kingdom for non-residents, and the withholding tax on amounts paid to non-resident parties.