Treaty withSaudi Arabia
The UAE and Saudi Arabia tax treaty.
What the treaty means if you or your company has income, profits or residence in both countries.
Position as at 12 November 2026
Applies from: 1 January 2020 for withholding taxes and other taxes, in both countries.
Entry into force: In force since 1 April 2019 (Saudi tax authority). The UAE Ministry of Finance table shows 1 January 2020, which is the date the treaty started to apply, not the date it came into force.
Signed: 23 May 2018
Withholding rates
What tax is taken at source.
Last checked 12 November 2026. Sources
| Payment | Treaty cap | Domestic rate without treaty | Conditions and evidence |
|---|---|---|---|
| DividendsArt. 10 | 5% | Saudi rate without the treaty: 5% | Saudi Arabia can tax dividends paid to a UAE resident at no more than 5%. No shareholding condition. The Saudi rate without the treaty is also 5%, so the treaty does not lower it.
3 of 3 official sourcesArt 10(2) (المادة العاشرة), ZATCA Arabic official text
|
| InterestArt. 11 | 0% | Saudi rate without the treaty: 5% (loan charges) | Interest (income from debt claims) from Saudi Arabia to a UAE resident who beneficially owns it is taxed only in the UAE.
3 of 3 official sourcesArt 11(1) (المادة الحادية عشرة), ZATCA Arabic official text
|
| RoyaltiesArt. 12 | 10% | Saudi rate without the treaty: 15% | Saudi Arabia can tax royalties at no more than 10% of the gross amount, compared with 15% without the treaty. The definition includes payments for using equipment.
3 of 3 official sourcesArt 12(2) (المادة الثانية عشرة), ZATCA Arabic official text
|
The treaty can reduce the rate to the lower of the two, usually only once you claim it with a UAE tax residence certificate. The UAE charges 0% on these payments. Position as at 12 November 2026.
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Sources for the Saudi Arabia treaty
2 of 2 official sourcesApplies from: 1 January 2020 for withholding taxes and other taxes, in both countries.
Entry into force: 1 April 2019.
Signed in Arabic only, in two original copies. There is no official English text, so the English on this page is our summary of the Arabic, with the Arabic article numbers.
Agreement between the Government of the Kingdom of Saudi Arabia and the Government of the United Arab Emirates for the avoidance of double taxation with respect to taxes on income and on capital and the prevention of tax evasion (Arabic only; our translation)
ZATCA Arabic official text
Last checked 12 November 2026
ZATCA Arabic official textUAE MoF Arabic official copy (uploaded Nov 2025)
Last checked 12 November 2026
UAE MoF Arabic official copy (uploaded Nov 2025)What changed on this page
No checked change events are available in this dataset.
Position as at 12 November 2026. How we check
Moving from Saudi Arabia
Where you are resident for tax.
General liable-to-tax test (domicile, residence, incorporation, management or similar); includes government-owned sovereign funds and exempt pension and charitable bodies (Art 4(1)). No UAE-specific individual test.
Running a company
When a Saudi Arabia business is taxed in the UAE.
Place of effective management (Art 4(3)).
Selling assets
Selling shares or property.
May be taxed where the property is (Art 13(1)). Wider rule: gains on any shares in a company resident in a state, other than shares listed on local stock markets, may be taxed in that state (Art 13(4)). Not limited to land-rich companies.
Pensions
Pensions and retirement income.
Private pensions: residence state only (Art 18(1)); public social security payments taxable only in the paying state (Art 18(2)). Government-service pensions: paying state only, unless the recipient is a resident and national of the other state (Art 19(2)).
Treaty updates
How the multilateral instrument changes this treaty.
The MLI does not change this treaty: Saudi Arabia listed it but the UAE did not. The treaty already has its own principal purpose test in Article 29(3).
Checked by PBF against official sources. Position as at 12 November 2026. How we check
PBF UAE Tax Hub. General information, not advice.