NewsCase StudiesEvents

Double Tax Treaty between Cyprus and Saudi Arabia approved by Saudi Council

Also in the news...

New immigration system: what you need to know

The UK has introduced a points-based immigration system.

Preparing for the Customs Declaration Service

Find out what you need to do to prepare for making declarations on the Customs Declaration Service.

Online Business Set-Up: 5 Tips to Help Your Website Rank in the UK

If youíre setting up a new online business, having a user-friendly website and sound SEO strategy thatís tailored to your target market is important. And if youíre targeting British consumers, there are a few SEO boxes you can tick to ensure you rank well on UK-based searches and drive the right traffic back to your website.

Check if youíre established in the UK for customs

Find out whether you're established in the UK for customs purposes.

Carry out international road haulage

What UK goods vehicle operators need to do to carry out international road haulage.

Double Tax Treaty between Cyprus and Saudi Arabia approved by Saudi Council

Back to News

Saudi Arabia's Shura Council (Majlis Al-Shura) approved the Double Tax Treaty (DTT) between Cyprus and Saudi Arabia on 26 September 2018. As previously reported the DTT was signed on 3 January 2018. The particulars of the DTT are presented below in summary.


The treaty applies to taxes on income as well as on gains from alienation of movable or immovable property.

In the case of Cyprus, the treaty covers corporate and personal income tax, special contribution for defence and capital gains tax, whereas in the case of Saudi Arabia, the treaty covers the Zakat and the income tax.

Withholding Tax


The DTT provides for withholding tax on dividends at the following rates:

  • Nil in cases where there is at least 25% participation by a company that is tax resident in the receiving jurisdiction.
  • 5% in all other cases.


No withholding tax is charged on interest, as long as the recipient is the beneficial owner of the income.


As long as the recipient is the beneficial owner of the income the treaty provides for the following rates of withholding tax:

  • 5% in cases where the royalties are paid for the use of, or the right to use, industrial, commercial or scientific equipment
  • 8% in all other cases

Capital Gains

The treaty provides that gains arising from the disposal of shares of a substantial participation in the capital of a company which is resident of a Contracting State may be taxed in that Contracting State.

A person is considered to have a substantial participation when this is at least 25% of the capital of the target company, at any time within twelve months prior to the disposal of the shares.


The DTT will come in to force on 1 January 2019 assuming the ratification procedures by the two countries are completed within 2018.

You are not logged in!

Please login or register to ask our experts a question.

Login now or register.