On 14 March 2018, officials from Georgia and Saudi Arabia signed an income tax treaty which has been forwarded for ratification.
The main goal of signing the agreement is to increase economic cooperation between Georgia and Saudi Arabia and attract more foreign investments, said Georgia's Finance Ministry.
The existing taxes to which this Agreement shall apply include profit tax, income tax and property tax. The treaty stipulates maximum withholding tax rates as follows:
- 5% on dividends
- 5% on income from debt-claims
- 5% on royalties for the use (or right to use) of industrial, commercial or scientific equipment; 8% in all other cases.
Once ratified by both countries, the treaty will enter into force on the first day of the second month following the one during which the later country will dully ratify it. It will become applicable from 1st of January of the following calendar year.
Georgia has currently concluded double tax treaties with 50 countries from all over the world.
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