Singapore’s agreement with Saudi Arabia for the avoidance of double taxation (“DTA”) will enter into force on 1 July 2011. 

The agreement is Singapore’s 66^th DTA and will encourage and facilitate cross-border trade and investment between Singapore and Saudi Arabia, by providing greater clarity on taxing rights and minimising the scope of double taxation between the two nations.  Amongst other provisions, the DTA provides for tax exemption in the country of source on profits derived from the operations of ships or aircraft in international traffic and lower withholding tax rates for interest and royalties. The DTA also includes the internationally agreed Standard for the exchange of information for tax purposes upon request.

The full text of the protocol is available here (101KB). The Protocol will enter into force after its ratification by both countries.