KPMG in Saudi Arabia reports on the latest development on Multilateral Instrument and the efforts of the Government to strengthen its tax treaties
Saudi Arabia signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the Convention). Saudi Arabia becomes the 84th jurisdiction to join the Convention, which now covers over 1,400 bilateral tax treaties. Once entered into force, a number of provisions of Saudi Arabia’s double tax treaties will be modified. This will swiftly implement a series of tax treaty measures to update international tax rules and lessen the opportunity for tax avoidance by multinational enterprises.