Please be advised that the double taxation treaty (DTT) between Saudi Arabia and the Czech Republic signed on April 25, 2012 will enter into force on May 1, 2013. The provisions of the DTT will be applied to income paid on or after January 1, 2014 in both Saudi Arabia and the Czech Republic.
The treaty stipulates the following withholding tax rates for dividends and interest income:
Dividends:
- Up to 5 %
Interest income:
- 0 %
Impact on investors: Rates for dividends and interest income for Saudi Arabia investors will be changed in accordance with the DTT between Saudi Arabia and the Czech Republic on or after January 1, 2014 in both Saudi Arabia and the Czech Republic.
Related Newsflash: Newsflash Czech Republic 2012– Double Tax Treaty between the Czech Republic and Saudi Arabia