SIGNING OF TREATY FOR THE AVOIDANCE OF DOUBLE TAXATION WITH SAUDI ARABIA
Cyprus has entered into a treaty for the avoidance of double taxation with Saudi Arabia, signed in Riyadh on the 3th January 2018.
Agreements for the avoidance of double taxation allow for the avoidance of taxation on income earned in either of the countries that are parties to the treaty twice, i.e. by both countries where the income in question is taxable. Usually, a credit is allowed against the tax levied in the country in which a company is tax resident, for tax levied in the other country that is party to the treaty.
The treaty is based on the Model Convention for the Avoidance of Double Taxation on Income and on Capital of the OECD and incorporates the provisions for exchange of financial and other information in accordance with the provisions of the Model Convention.
Through the signing of the treaty, Cyprus further enhances its position as an international business centre, with over 60 treaties for the avoidance of double taxation in force.