Egyptian-Saudi double taxation agreement comes into effect

An agreement with Saudi Arabia on avoidance of double taxation came into effect yesterday after it was published in the Official Gazette, Al Mal reports. The agreement, which was signed in April 2016, applies to any resident, building, or movable properties in both countries. Under the pact, taxes on oil project royalties are set at 10%, while tax on distributed dividends is set at 5%, if the company owns at least a 20% share. The tax rate is at 10% for smaller holdings. Companies owned by either government are exempt from the tax.