RIYADH - Saudi Arabia and the Swiss Federal Council on Sunday signed an agreement to avoid double taxation on income and capital, as well as to prevent tax evasion.
The Saudi Minister of Finance Mohammed Al-Jadaan and the Swiss Minister of Finance Ueli Maurer, who is visiting Saudi Arabia, signed the agreement at the Ministry of Finance headquarters in Riyadh.
Al-Jadaan said the agreement represents a stable legal framework that defines the tax relationship between Saudi Arabia and Switzerland. He stressed that it clearly defines what taxation would be imposed by investors from both countries when exercising their activities in the contracting state, preventing double taxation on the income derived from investors’ activity.
Thus, this agreement reduces the tax burden on investors and is expected to achieve transparency in the tax system.
Al-Jadaan also called on businesses in the two countries to benefit from the advantages and reductions in taxes to establish more joint commercial and investment projects. He pointed out that the trade exchange between the Kingdom and Switzerland, which reached SR10.3bn in 2016, does not reflect the size of the economies of both countries.
Moreover, he urged Swiss businesses to learn more about investment opportunities, industries and commodities in order to increase Swiss imports from the Saudi Arabia.
This agreement is the 51st Double Taxation Agreement (DTA) that Saudi Arabia has signed with other countries.
Copyright: Arab News © 2018 All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).