Tax treaty between Saudi Arabia and Vietnam: effective from 2012

Signed in Riyadh on 10 April 2010, the income tax treaty between Saudi Arabia and Vietnam is effective from 1 January 2012.

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 encompasses:

• a building site, a construction, assembly or installation project or supervisory activities in connection therewith, but only if such site, project or activities last more than six months; and

• the furnishing of services, including consultancy services, by an enterprise through employees or other personnel engaged by the enterprise for such purpose, but only if activities of that nature continue (for the same or a connected project) within a contracting state for a period or periods aggregating more than six months within any twelve month period.

Dividends