If you are using the HMRC intranet, you can view the new agreement via the “New Contracts/Protocols in Force” link in the sidebar. On the HMRC website, the search for “Saudi Arabia” will provide a link to the contract. We can provide current and historical tax rates, comparison tables and country surveys through our specialized tax databases. We have current key summaries and detailed analysis of the tax system in countries around the world on corporate taxation, individual taxation, business and investment. Double Taxation Convention List of the conventions of the Ministry of Finance of Saudi Arabia. Following recent adjustments in property valuations and exchange rate fluctuations, investors in the Middle East have shown a growing appetite to invest in European real estate, particularly in the UK. Asset management players, both on the basis and on the offshore, often travel to the Middle East to raise funds for investments in the UK. During this quarter, we discuss the tax treatment of UK property investments by Ijara structures and the benefits of the new double taxation agreement between the UK and Saudi Arabia (treaty) on Uk property investments supported by Saudi Arabia. The first comprehensive agreement to avoid double taxation between the UK and Saudi Arabia was signed on Wednesday by Chancellor of the Exchequer Alistair Darling and Saudi Arabia`s Finance Minister. Dr. Ibrahim A. Al-Assaf. The Chancellor welcomed the agreement and said: “This treaty is a welcome addition to the UK tax system; it will strengthen economic relations between our two countries and will be good for British companies doing business in Saudi Arabia.
For the purposes of UK tax law and for the purposes of this note, “interest” refers to profits and other charges and payments which, when collected in the context of an Islamic financial transaction, have an economic effect or similar to that of interest payments made under conventional financing. Double taxation agreements are designed to eliminate double taxation of income or profits collected in one country and paid to residents of the other country. They do so by defying the tax duties that each country has under its national legislation, through the same income and profits. The text of the tax treaty relates to www.gov.uk/government/publications/saudi-arabia-tax-treaties A comprehensive agreement (SI 2008/1770) came into force on 1 January 2009 and came into force in the United Kingdom from 1 April 2010 for corporation tax and from 6 April 2010 for income tax and capital gains tax. It came into force in Saudi Arabia on 1 January 2010. An agreement (SI 1994/767), which applies only to airlines and their employees, came into force from 1 January 1989 with regard to airlines and their employees from 3 October 1994. Nothing in the overall agreement affects the previous agreement, unless a provision of the global agreement offers a greater exemption from the taxes that will be covered by the subsequent agreement, in which case this provision will apply.