Learn how UAE-based companies can recover Withholding Tax (WHT) from Saudi Arabia, even if they pay 0% corporate tax under the UAE’s current tax regime. This comprehensive guide explains how the UAE–KSA Double Taxation Avoidance Agreement (DTAA) works, outlines the WHT refund process through ZATCA, and highlights the documents required. Ideal for consultants, freelancers, and tech firms in the UAE working with Saudi clients, this post ensures you don’t leave any money on the table.
Many UAE businesses mistakenly assume that since they fall under the 0% corporate tax bracket or are eligible for Small Business Relief (SBR), they cannot benefit from the provisions of international tax treaties. However, that’s not the case. The DTAA between the UAE and Saudi Arabia allows for the recovery of WHT paid in Saudi Arabia, even if the UAE entity is not paying corporate tax domestically. This means businesses providing services to Saudi clients and receiving payments with WHT deductions can legally reclaim a portion of their earnings.
The process involves submitting the appropriate documentation to the Zakat, Tax and Customs Authority (ZATCA) in Saudi Arabia, which includes a tax residency certificate from the UAE Ministry of Finance, proof of income, invoices, and bank statements. Although the process may seem technical, the financial benefits are significant, particularly for service-based businesses in the consulting, IT, design, and freelance sectors.
Understanding your eligibility and the step-by-step refund procedure could unlock thousands of dirhams annually. With increased cross-border trade and remote service delivery between the two countries, maximizing tax efficiency is more important than ever.
If your UAE business has been subject to WHT in Saudi Arabia, now is the time to explore your refund options and leverage the DTAA to improve your bottom line.
🔗 For a detailed breakdown, visit the original post here: Withholding Tax in Saudi Arabia for UAE Companies Providing Services
