Tax Treaty developments GCC Member States

Egypt ratifies Double Tax Treaty with Qatar

According to a press release of 19 October 2023, Egypt has ratified the Double Tax Treaty (DTT) with Qatar.

Based on an unofficial translation of the DTT, the source country’s Withholding Tax (WHT) rate on dividends may be reduced to 5% provided the recipient is the beneficial owner of the dividends and owns at least 10% of the shares for at least one year. In other cases, the WHT rate on dividends may be reduced to 10%.

A reduced WHT rate of 10% applies on interest payments and royalties, provided the recipient is the beneficial owner of the relevant payments. The right to levy tax on capital gains realized with the alienation of shares is attributed to the source country, provided the alienator owns at least 10% of the shares during one year prior to the alienation. In other cases, the right to levy such capital gains tax will be attributed to the alienator’s country of residence.       

 

Qatar ratifies Protocol to Double Tax Treaty with Ukraine

On 16 August 2023, Qatar has ratified the Protocol amending the DTT between Qatar and Ukraine. The primary amendments relate to the DTT’s Article 25 (Mutual Agreement Procedure), Article 26 (Exchange of Information) and Article 28 (Limitation of Benefits).    

 

United Arab Emirates Cabinet approves Double Tax Treaty with Tanzania

On 9 October 2023, the UAE Cabinet of Ministers approved the DTT with Tanzania. The UAE – Tanzania DTT was signed on 27 September 2022. Further details will be reported as soon as they become available. 

 

Saudi Arabia and Peru express interest in concluding a Double Tax Treaty

During a recent meeting between officials from Saudi Arabia and Peru, the countries have expressed willingness to conclude a DTT between them. Further developments will be reported as they occur.

 

Conclusion

The GCC Member States continue expanding and updating their Double Tax Treaty networks for the benefit of international businesses.