(MENAFN - Saudi Press Agency) The Kingdom of Saudi Arabia and the Czech Republic signed today in Prague an agreement to avoid double taxation and prevent tax evasion regarding taxes on income.
On the Saudi side, the agreement was signed by Minister of Finance Dr. Ibrahim bin Abdulaziz Al-Assaf, who is visiting the Czech Republic, and on the Czech side, it was signed by Minister of Finance Miroslav Kalosak.
In a press statement, Minister of Finance Dr. Ibrahim Al-Assaf said that the agreement is a stable legal framework defining tax relations between the two countries.
He added that it also clearly defines tax treatment when a resident of the contracting state practices activity in the other contracting state and ensures prevention of double taxation on income derived from the activity of investors.
Dr. Al-Assaf pointed out that the agreement reduces the tax burden on investors and realize for them transparency in tax treatment.
Dr. Al-Assaf urged businessmen in both countries to take advantage of the agreement in terms of tax cuts and establish more joint investment projects.
The Minister pointed out that the volume of trade exchange between the Kingdom and the Czech Republic reached in 2011 about SR 1,146 million, noting that today's agreement is the 30th signed by the Kingdom with other countries.