Saudi Arabia approves double tax avoidance treaty with UAE

Saudi Arabia's Cabinet on Tuesday approved an agreement between the Kingdom and the United Arab Emirates to avoid double taxation in respect of taxes on income and capital and to prevent tax evasion.

A royal decree has been prepared, state-owned SPA reported.

The two countries had signed a landmark double income tax treaty, the first such agreement between two members of the GCC, in May last year.

The agreement aims to strengthen cooperation frameworks in tax matters and consolidate financial, economic and investment relations as well as encourage free movement of capital and service exchange between the two nations.