<p>2019 Latvia-Saudi Arabia Income and Capital Tax Treaty Available</p>

2019 Latvia-Saudi Arabia Income and Capital Tax Treaty Available

<p>Tax Analysts has obtained the English text of the Latvia-Saudi Arabia income and capital tax treaty signed November 7, 2019, in Riyadh.</p> <p>Under the treaty, dividends and interest are taxable at a top rate of 5 percent. An exemption applies to dividends if the beneficial owner is a company (other than a partnership) that is a resident of the other contracting state that directly holds at least 25 percent of the capital of the payer company. An exemption also applies to interest that is derived and beneficially owned by a company (other than a partnership) that is a resident of the other contracting state. Royalties payable for the use of, or the right to use, industrial, commercial or scientific equipment are taxable at 5 percent while a 7 percent rate applies in other cases. Both countries generally apply the credit method to eliminate double taxation.</p> <p>This is the first tax treaty between Latvia and Saudi Arabia. It will enter into force on the first day of the second month following the exchange of ratification instruments and its provisions will generally apply from January 1 of the year following entry into force. </p>

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<p>Tax Analysts has obtained the English text of the Latvia-Saudi Arabia income and capital tax treaty signed November 7, 2019, in Riyadh.</p>

Tax Analysts has obtained the English text of the Latvia-Saudi Arabia income and capital tax treaty signed November 7, 2019, in Riyadh. Under the treaty, dividends and interest are taxable at a top rate of 5 percent. An exemption applies to dividends if the beneficial owner is a company (other than a partnership) that is a resident of the other contracting state that directly holds at least 25 percent of the capital of the payer company. An exemption also applies to interest that is derived and beneficially owned by a company (other than a partnership) that is a resident of the other contracting state. Royalties payable for the use of, or the right to use, industrial, commercial or scientific equipment are taxable at 5 percent while a 7 percent rate applies in other cases. Both countries generally apply the credit method to eliminate double taxation. This is the first tax treaty between Latvia and Saudi Arabia. It will enter into force on the first day of the second month following the exchange of ratification instruments and its provisions will generally apply from January 1 of the year following entry into force. 

<h4>Rate Table Instructions</h4> <ul> <li>You must enter a rate for each rate type</li> <li>Enter only one rate value per row</li> <li>You may leave the country columns blank if the rate is the same for both countries</li> <li>Country names (if entered) must exactly match the jurisdictions</li> <li>Leave the Partner Country column blank if you want the rate to apply to all partners of the Main Country</li> <li>Enter "n/a" in each rate row to hide the partner in the Main Country table</li> <li>Note that the same rates may apply for Main Country and Partner Country or the Main Country may apply different rates to the Partner Country</li> </ul> <table> <tbody> <tr><th> <div>Rate Type</div> (Dividends, Interest, Royalties)</th><th>Main Country</th><th>Partner Country</th><th>Rate</th><th>Footnote 1</th><th>Footnote 2</th><th>Footnote 3</th><th>Footnote 4</th></tr> <tr> <td>Dividends</td> <td> </td> <td> </td> <td>0/5 </td> <td>The 0 percent rate applies if the beneficial owner is a company (other than a partnership) that is a resident of the other contracting state that directly holds at least 25 percent of the capital of the payer company. The 5 percent rate applies in other cases.</td> <td> </td> <td> </td> <td> </td> </tr> <tr> <td>Interest</td> <td> </td> <td> </td> <td>0/5 </td> <td>The 0 percent rate applies interest derived and beneficially owned by a company (other than a partnership) that is a resident of the other contracting state. The 5 percent rate applies in other cases. </td> <td> </td> <td> </td> <td> </td> </tr> <tr> <td>Royalties</td> <td> </td> <td> </td> <td>5/7 </td> <td>The 5 percent rate applies to industrial, commercial or scientific equipment. The 7 percent rate applies in other cases.</td> <td> </td> <td> </td> <td> </td> </tr> </tbody> </table>

Latvia - Saudi Arabia: 2019 Income and Capital Tax Convention and Final Protocol

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2019 Latvia-Saudi Arabia Income and Capital Tax Treaty Available