Saudi Arabia’s Minister of Finance, Mohammed Al-Jadaan, signed a tax agreement on Thursday with his Qatari Counterpart Ali Al-Kuwari, to avoid the possibility of double taxation and prevent tax evasion, reported Saudi Press Agency (SPA).
Al-Jadaan underscored that the current deal is part of the efforts made to foster the legislative coordination between the two countries. Moreover, it strengthens the bilateral trade and attract promising investment deals.
During the signing ceremony in Doha, Al-Kuwari shed light on the significance of the agreement and the pivotal role it plays in ensuring the international standards of transparency.
He stressed that both countries strongly adhere to the exchange of financial information to enhance the bilateral economic cooperation.
Furthermore, the agreement aims to establish tax relations between the two countries to eliminate all possibilities of double taxation, promoting commercial cooperation and simultaneously combating tax evasion.
Double taxing simply means imposing taxes on the same income, assets or financial transaction at two different points of time. Therefore, a certain income is subject to taxes in one country, after the same income has already been taxed by another country. Several countries have signed agreements and deals to prevent double taxation on financial transactions.
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