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UAE and Saudi Arabia · Interest

Position as at 12 November 2026

Withholding rates

What tax is taken at source.

Last checked 12 November 2026.

Saudi Arabia → UAE

What tax is taken at source.
PaymentTreaty capDomestic rate without treatyConditions and evidence
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.

  • Saudi Arabia cannot tax interest (income from debt-claims) paid to a UAE resident who is its beneficial owner; only the UAE may (Art 11(1)).
3 of 3 official sources

Art 11(1) (المادة الحادية 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. Position as at 12 November 2026.

UAE → Saudi Arabia

The UAE charges 0% on these payments.

Checked by PBF against official sources. Position as at 12 November 2026. How we check

PBF UAE Tax Hub. General information, not advice.