The income tax treaty between Egypt and Saudi Arabia entered into force on 1 July 2017. The treaty, signed 8 April 2016, is the first of its kind between the two countries.
The treaty covers Egyptian individual income tax, tax on profits of legal entities, tax withheld at source, and supplementary taxes. It covers Saudi Zakat and income tax, including the natural gas investment tax.
The treaty includes the provision that a permanent establishment will be deemed constituted when an enterprise furnishes services in a Contracting State through employees or other engaged personnel for the same or connected project for a period or periods aggregating more than 6 months within any 12-month period.
The following capital gains derived by a resident of one Contracting State may be taxed by the other State:
Gains from the alienation of other property by a resident of a Contracting State may only be taxed by that State.
Both countries apply the credit method for the elimination of double taxation.
The treaty applies from 1 January 2018.
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