During the recent Future Investment Initiative conference in Riyadh, held from 29 to 31 October 2024, officials from Saudi Arabia and Slovenia convened to discuss bilateral relations, including the potential establishment of an income tax treaty.
A tax treaty is a bilateral agreement between two countries aimed at addressing double taxation issues related to the passive and active income of their citizens. These treaties typically specify the tax rates that one country can impose on a taxpayer’s income, capital, estate, or wealth. An income tax treaty is often referred to as a Double Tax Agreement (DTA).
If an agreement is reached, the treaty will be the first of its kind between the two countries. The treaty will have to be finalised, signed, and ratified before it can take effect.
