Saudi treaties to cut costs, taxes for foreign firms
Riyadh, August 10, 2014
The wave of new treaties signed by Saudi Arabia will play an important part in reducing financial and administrative tax costs for international companies doing business in the country, as well as eliminating double taxation, said a report.
Produced by the global publishing firm, Oxford Business Group (OBG), Saudi Arabia 2014 will plot the wave of new agreements signed in recent months, which are set to see the Kingdom dispel with double taxation in 13 additional countries across the continents.
The country has signed treaties with Algeria, Ethiopia, Hungary, Azerbaijan and Tajikistan since October, while a further six - with Egypt, Kosovo, Kyrgyzstan, Sudan, Sweden and Venezuela – have been approved. A treaty with Tunisia has also come into force during the last six months.
OBG has signed a Memorandum of Understanding (MOU) on research facilities with PwC for its forthcoming report. Under the MOU, OBG will work closely with PwC to compile the Tax Chapter of The Report: Saudi Arabia 2014.
“Saudi Arabia’s drive to facilitate foreign direct investment (FDI) inflows would support the Kingdom’s longer term aim of diversifying its economy away from hydrocarbon reliance,” said Jana Treeck, regional director for the Middle East.
“Saudi Arabia’s strong macro fundamentals have ensured that the country remains a major destination for FDI.
“Its current efforts to enhance the Kingdom’s tax framework, in preparation for broadening the economic base, will be of key interest to investors and I am thrilled that our forthcoming publication will benefit from PwC’s expertise.”
PwC KSA Country Leader, Jacques Fakhoury, said that he expected OBG’s new report to chart Saudi Arabia’s levels of inbound and outbound investment, together with other cross-border finance and operating activities, which have reportedly climbed to historical highs.
“We look forward to providing investors with the latest data on these and other ways in which the Kingdom is changing its tax framework, through this exciting venture with Oxford Business Group.”
Welcoming PwC on board, Andrianna Dafnis, OBG’s country director, pointed out that Saudi Arabia’s diversification efforts were already gaining ground.
“The Kingdom’s infrastructure upgrades are taking shape, while its Islamic finance sector continues to expand. New openings are also emerging in areas such as education and health,” she said. “With FDI levels likely to climb even higher, PwC’s knowledge of Saudi Arabia’s tax environment will prove hugely useful to our team as we begin the research for this important guide to investing in the Kingdom.”
The report Saudi Arabia 2014 will be a vital guide to the many facets of the country, including its macroeconomics, infrastructure, banking and other sectoral developments. The publication will be available in print or online. – TradeArabia News Service