Treaty relief documents
How do we apply a treaty rate?
The situation
Treaty rates can reduce WHT. Each treaty must be checked and documented.
The law
- Art 68, Income Tax Law and Art 63, Implementing Regulations: Residents and PEs withhold tax on payments to non-residents from a Saudi source at 5, 15 or 20 percent
What it means for you
Ask the recipient for a tax residency certificate from its home tax authority and check the treaty article for that type of payment. Apply the treaty rate only with the documents on file; otherwise withhold at the domestic rate. Each treaty has its own exceptions, so check the text each time.
What to do
- Get residency certificate.
- Check treaty.
- Apply.
We can do this for youMonthly withholding tax on payments to non-residents: rates, return and payment by the 10th: SAR 750