DT16603 - Saudi Arabia: Source state taxation

Dividends

There are two rates of source state taxation provided by Article 10.

Qualifying dividends paid by a property investment vehicle can be taxed at a rate of 15%.

In all other cases the rate will be 5%.

Income from debt-claims

Any income from debt-claims is taxable only in the state in which the beneficial owner is resident (Article 11).

Royalties

Under Article 12, the term 鈥渞oyalties鈥� includes the leasing of industrial, commercial or scientific equipment. Such rentals can be taxed by the state in which the equipment is used at a rate of 5%.

Any other royalty can be taxed by the source state at a rate of 8%.