After recent adjustments in property valuations and exchange rate fluctuations, middle eastern investors have shown a growing appetite for investing in European real estate, with a particular focus on the UK. Players in the asset management industry, both offshore and onshore, often travel to the Middle East to raise funds to invest in the UK. This quarter we will discuss the tax treatment of UK property investments by Ijara structures and the benefits of the new UK-Saudi Arabia double taxation treaty (the Treaty) on UK real estate investments backed by Saudi Arabia. An agreement (SI 1994/767), which concerns only airlines and their workers, entered into force from 1 January 1989 for airlines and their workers from 3 October 1994. Nothing in the comprehensive agreement shall affect the previous agreement, unless a provision of the global agreement provides for a greater exemption from the taxes covered by the subsequent agreement, in which case that provision shall apply. Double taxation treaties List of double taxation treaties made available by the Saudi Ministry of Finance. A comprehensive agreement (SI 2008/1770) entered into force on 1 January 2009 and entered into force in the United Kingdom from 1 April 2010 for corporation tax and from 6 April 2010 for income tax and capital gains tax. It entered into force in Saudi Arabia on 1 January 2010. The first comprehensive double taxation agreement between Britain and Saudi Arabia was signed on Wednesday by Chancellor of the Échelier Alistair Darling and Saudi Arabia`s finance minister. Dr. Ibrahim A. Al-Assaf.
Double taxation treaties aim to eliminate double taxation of income or profits generated in one country and paid to residents of the other country. They do so by allocating the tax rights that each country has under its national law among the same income and the same profits. The Chancellor welcomed the agreement and said: “This treaty is a welcome complement to the UK tax treaty; It will strengthen economic relations between our two countries and be good for British companies doing business in Saudi Arabia. Additional information on taxation in that country may appear in general works that are not on this list. . . .
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