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June 26, 2026

This convention is designed to prevent double taxation on income and capital. It covers Zakat and income tax for Saudi Arabia, and tax on profit, income tax, property tax, and land tax for Azerbaijan. The agreement specifies tiered withholding tax rates for dividends: 5% for government entities or investments over 300,000 USD, and 7% otherwise (Article 10). The maximum withholding rate for income from debt-claims is 7% (Article 11), and for royalties, it is 10% (Article 12). The protocol provides additional clarifications, forming an integral part of the treaty.

Convention between the Government of THE KINGDOM OF SAUDI ARABIA and the Government of THE REPUBLIC OF AZERBAIJAN for the Avoidance of Double Taxation and the Prevention of Tax Evasion with respect to Taxes on Income and on Capital

The Government of the Kingdom of Saudi Arabia and the Government of the Republic of Azerbaijan,

Desiring to conclude a Convention for the avoidance of double taxation and the prevention of tax evasion with respect to taxes on income and on capital;

Have agreed as follows:

Contents

1. Persons Covered

2. Taxes Covered

3. General Definitions

4. Resident

5. Permanent Establishment

6. Income from Immovable Property

7. Business Profits

8. Shipping and Air Transport

9. Associated Enterprises

10. Dividends

11. Income from Debt-Claims

12. Royalties

13. Capital Gains

14. Independent Personal Services

15. Dependent Personal Services

16. Directors' Fees

17. Artistes and Sportsmen

18. Pensions

19. Government Service

20. Students

21. Teachers and Researchers

22. Other Income

23. Capital

24. Method for Elimination of Double Taxation

25. Mutual Agreement Procedure

26. Exchange of Information

27. Members of Diplomatic Missions and Consular Posts

28. Miscellaneous Provisions

29. Entry into Force

30. Termination

Protocol

Article 1
Persons Covered

This Convention shall apply to persons who are residents of one or both of the Contracting States.

Article 2
Taxes Covered

This is an unofficial / best effort translation

Article 1Persons Covered

Article 2Taxes Covered

Article 1
Persons Covered

Article 2
Taxes Covered