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UK agrees tax treaty with Saudis

05 November 2007
Categories: News
A first-time comprehensive double taxation convention has been signed in London

During the state visit to the UK of King Abdullah of Saudi Arabia, a first-time comprehensive double taxation convention between the UK and the Kingdom of Saudi Arabia was signed in London by the Chancellor of the Exchequer and the minister of finance of Saudi Arabia.

The treaty generally follows the OECD Model Double Taxation Convention. Important features include the complete elimination of source-country withholding taxes on all interest payments. Dividends may generally be taxed at source up to a maximum rate of 5% and royalties to a maximum of 8%.

The text of the new convention is available on: www.hmrc.gov.uk/international/saudi-arabia.pdf.

The convention will enter into force once both countries have completed their legislative procedures.

Categories: News
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