DOUBLE TAX TREATY SIGNED BETWEEN CYPRUS AND SAUDI ARABIA

A double tax treaty for the avoidance of double taxation between Cyprus and Saudi Arabia was signed on the 3rd January 2018 and is expected to come in force on 1st January 2019.

The main particulars of the new treaty include the avoidance of withholding taxes on dividends in situations where there is participation of at least 25% by a company that is tax resident in the receiving jurisdiction, and at least 5% in all other cases. Additionally, no withholding tax will be charged on interest, as long as the recipient is the beneficial owner of the income.