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UAE and Saudi Arabia · Royalties

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
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.

  • Saudi Arabia's 10% cap on royalties applies only if the beneficial owner of the royalties is a UAE resident (Art 12(2)).
3 of 3 official sources

Art 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. 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.