Double taxation agreement between Switzerland and Saudi Arabia

As of 1 January 2022, the double taxation agreement between Switzerland and Saudi Arabia will enter into force.

Essentially, the double taxation agreement (DTA) corresponds to the OECD Model Convention.

For dividends and royalties, the DTA defines the following withholding tax rates:

Dividends:

• Portfolio: 15.00 %

• Qualified participation of a company: 5.00 - 10.00 %

Royalties:

• For the use of industrial, commercial or scientific equipment: 5.00 %

• Otherwise: 7.00 %

Due to the entry into force of the DTA, Saudi Arabian taxes on dividends and royalties can be credited or reclaimed in Switzerland as of 1 January 2022.