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Saudi Arabia Introduces Virtual Service PE Approach

|Approved Changes|Saudi Arabia
Saudi Arabia

According to recent reports, Saudi Arabia has issued internal guidance to its tax offices that for the purpose of withholding tax relief claims made under a tax treaty, a non-resident may be deemed to have a "virtual" service permanent establishment (PE) in the country. According to the guidance, a "virtual" PE may be deemed constituted if services are furnished under contract for a period exce…

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