The Convention for the avoidance of double taxation with respect to taxes on income and for the prevention of tax evasion between the Republic of Cyprus and the Kingdom of Saudi Arabia was signed on January 3rd, 2018 in Riyadh and the treaty is expected to be ratified and come into force as from 1st of January 2019.
The Convention will contribute to further develop the economic relationship and to enhance the co-operation in tax matters between the two Countries.
The Convention is based on the OECD Model Convention for the Avoidance of Double Taxation on Income and on Capital and it includes the exchange of financial and other information in accordance with the relevant Article of the Model Convention.
Upgrading and expanding the network of Double Taxation Conventions, is of high economic and political importance and aims to further strengthen Cyprus as an international business center.
The convention shall apply to the following taxes:
- In the Republic of Cyprus:
- The income tax
- The corporate income tax
- The special contribution for the defence of the Republic; and
- The capital gains tax
2. In the Kingdom of Saudi Arabia:
- The Zakat; and
- The income tax including the natural gas investment tax.