Tax treaty between Saudi Arabia and Singapore ratified by Saudi Arabia

On 4th April 2011, the Saudi Arabian Cabinet approved the tax treaty with Singapore. The agreement for the avoidance of double taxation ‘DTA' was signed in Riyadh in 3rd May 2010.

The DTA includes the internationally agreed Standard for the exchange of information upon request for tax purposes.

The main provisions of the agreement are as follows:

Permanent establishment

The term ‘Permanent establishment' means a fixed place of business through which the business of an enterprise is wholly or partly carried on.

The term ‘permanent establishment' also includes:

• a building site, a construction, installation or assembly project, or supervisory activities connected therewith, but only where such site, project or activities lasts for a period of more than 6 months;