Common use of METHODS FOR ELIMINATION OF DOUBLE TAXATION Clause in Contracts

METHODS FOR ELIMINATION OF DOUBLE TAXATION. 1. Double taxation shall be eliminated as follows: (a) in the case of the Kingdom of Saudi Arabia: Where a resident of the Kingdom of Saudi Arabia derives income which, in accordance with the provisions of this Agreement, may be taxed in Singapore, the Kingdom of Saudi Arabia shall allow as a deduction from the tax on the income of that resident an amount equal to the tax paid in Singapore. Such deduction shall not, however, exceed that part of the tax, as computed before the deduction is given, which is attributable to such income derived from Singapore; (b) in the case of Singapore: Where a resident of Singapore derives income from the Kingdom of Saudi Arabia which, in accordance with the provisions of this Agreement, may be taxed in the Kingdom of Saudi Arabia, Singapore shall, subject to its laws regarding the allowance as a credit against Singapore tax of tax payable in any country other than Singapore, allow the Saudi tax paid, whether directly or by deduction, as a credit against the Singapore tax payable on the income of that resident. Where such income is a dividend paid by a company which is a resident of the Kingdom of Saudi Arabia to a resident of Singapore which is a company owning directly or indirectly not less than 10 per cent of the share capital of the first-mentioned company, the credit shall take into account the Saudi tax paid by that company on the portion of its profits out of which the dividend is paid. 2. Where tax on income arising in either Contracting State is exempted or reduced under this Agreement or in accordance with the laws and regulations of either Contracting State for the promotion of economic development, such tax which has been exempted or reduced shall be deemed to have been paid for the purposes of this Article. The provision of this paragraph shall apply for the first 5 years from which this Agreement is effective. 3. In the case of the Kingdom of Saudi Arabia, the methods for elimination of double taxation will not prejudice the provisions of the Zakat collection regime as regards Saudi nationals.

METHODS FOR ELIMINATION OF DOUBLE TAXATION. 1. Double taxation shall be eliminated as follows: (a) a. in the case of the Kingdom of Saudi Arabia: Where a resident of the Kingdom of Saudi Arabia derives income which, in accordance with the provisions of this Agreement, may be taxed in Singapore, the Kingdom of Saudi Arabia shall allow as a deduction from the tax on the income of that resident an amount equal to the tax paid in Singapore. Such deduction shall not, however, exceed that part of the tax, as computed before the deduction is given, which is attributable to such income derived from Singapore; (b) b. in the case of Singapore: Where a resident of Singapore derives income from the Kingdom of Saudi Arabia which, in accordance with the provisions of this Agreement, may be taxed in the Kingdom of Saudi Arabia, Singapore shall, subject to its laws regarding the allowance as a credit against Singapore tax of tax payable in any country other than Singapore, allow the Saudi tax paid, whether directly or by deduction, as a credit against the Singapore tax payable on the income of that resident. Where such income is a dividend paid by a company which is a resident of the Kingdom of Saudi Arabia to a resident of Singapore which is a company owning directly or indirectly not less than 10 per cent of the share capital of the first-mentioned company, the credit shall take into account the Saudi tax paid by that company on the portion of its profits out of which the dividend is paid. 2. Where tax on income arising in either Contracting State is exempted or reduced under this Agreement or in accordance with the laws and regulations of either Contracting State for the promotion of economic development, such tax which has been exempted or reduced shall be deemed to have been paid for the purposes of this Article. The provision of this paragraph shall apply for the first 5 years from which this Agreement is effective. 3. In the case of the Kingdom of Saudi Arabia, the methods for elimination of double taxation will not prejudice the provisions of the Zakat collection regime as regards Saudi nationals.